The study on the legal effects of rural land circulation system is a good way to make an in-depth investigation on the present and future status of rural land circulation system.The two test areas in Wuhan have been used as samples to explore the peasants’ legal knowledge and legal attitudes towards the land transfer system.This article presents the peasants’ actual needs in land transfer and tries to reveal the legal effect of land circulation system.After analyzing the reasons of the lack of rural land transfer,it is suggested that the government should try their best to eliminate the barriers of land transfer,specify the mode of operation of land transfer and establish the dispute settlement mechanism so as to improve the operation effects of land transfer.