Abstract: There are many approaches in establishing a long-term efficient mechanism.Of them,institutional innovation has its special significance and it is an inexhaustible power for peasant to increase their incomes.The system in effect restricts peasant from increasing income,the main aspects include: Hukou system,land system,agricultural tax and financial system,primary-level organizations system and income and distribution system.Institutional innovation of above systems is the core for constructing a long-term e...