Abstract:Decreasing construction using land in urban area and increasing agricultural land in rural area is very necessary in improving rural production and living conditions and environment, rrealizing unified planning in urban and rural areas, and establishing an unified land market. Through analysis on problems occurred in carrying out the "linked policy "in Lanshan district in Linyi city, the basic principles, practical operation model and policy recommendations are put forward in this paper. It will provide the basis for government to make decisions and to make greater contribution for the new rural development.