Abstract：While it has relieved the burden of peasants, the reform of tax and fee has extruded the space of village financial interests, thus revealing the interests tension concealed in the traditional pattern of interests- interdependence between the township government and village power. This paper reveals the tension and the village finance dilemma involved by uneven game theory through the observation and analysis on T township in the middle of China, and further points out that the fundamental solution to the issue of peasants' burden is closely related to the reform in financial system from central government to local governments and the relations between all strata of village governance framework. In this view, the reform of tax and fee should be regarded as a part of the integral reform rather than a good solution to the issue of peasants' burden.
