Abstract:Through deep investigation and analysis of institution unit reform of township in Hubei province,this paper discusses the intrinsic logic and development direction of institution unit reform of township at the national level,recognizes this system is product of traditional management way of rural social affairs characterized by segmentation,plan and centralization,which does not accommodate with the peasant's increasing public demand and the need of rural market economy and social development.To adapt to rural market economy development,it points out that fundamental reform should be carried on to format a new rural public service system characterized by presant's demand orientation,government domination and multi-dimensional supplies.