Abstract:Based on the framework of the elites identification-relative price changes of elements-institutional change,the paper studied the inner and operation mechanism in the case practice of Xia Liuzhai Village. It was found that the intrinsic demand of rural collective property right reform derived from the relative change of factor price; the switch from the economic elite to the governance elite enabled rural able-person to govern the village with a modern concept,which coincided with the goal of the reform of collective property right. The Rural able-person could coodinate the relations among government,collective and villagers and reduce the cost of institutional change. The switch from economic elite to the village elite urged for improvement of the demand for induction,effective learning,riskless transition,and external support. Outfitted with formal rules,informal rules and implementation mechanism,the fully-developed rural governance could guarantee the direction in the reform of collective property rights.