Local government is the basic political organization in Chinese countryside. It is the lowest level of state political system, and it is also a junction between the state and the society. China is undergoing the transition from planned economy to market economy. In the social reform of far-reaching significance, tremendous changes of role and behavior of local government have taken place. Description of concrete features of such changes, perspective review of systematic reasons leading to such changes and analyses of influences exerted by such changes would help us better understand the essence of the relationship between the state and the society up to now.