This paper provides a rational analysis on the rural power structure since villagers’ self-governance in the 1980s from the theoretical perspective of Modern State-construction. The true nature of the transformation of power structure is the result of conflicting game between state-power and social-power, as it were, the democratic transformation of power structure originating from the inherent requirements of the Modern State-construction. The fundamental objective of Modern State-construction is to integrate the relationship between state and society and market, during which the democratization of power structure epitomizes in two ways, namely the universal implementation of election system which means the changes of sources for the legitimacy of power and the expansion of the scope of village self-governance since the household contract responsibility system. The government should devolve authority to regions and the grass roots and meanwhile carry out democracy in the countryside so as to maintain and rebuild the social order and to innovate social governance.