Recently, "Sustainable development" has become the guideline for the administration implementing of our Government in Taiwan, in which the issue of water resource conservation is one of the most important and urgent tasks. In order to protect the water resource, the establishing of "water resource conservation area" is very necessary and also an effective instrument. However, in a so-called "administration due to law" state such as in Taiwan, the legal institution is the essential base for all of the measurements as mention above. Therefore, it's precondition for our Government to make legal institution (e.g. "water reaource conservation act") as necessary as possible. The structure of this paper can be described as follows: first, this article tries to analyze the definition of "institution"; "entitlement"; "negotiation" and their relationship. And then to take the "specific area for water resource" in Taipei as an example for the empirical study in which the goals concentrate on following aspects: the relationship between land-use restriction and so-called "unbalanced institution"; "implementing mechanism of "transfer of entitlement"; and the strength of "betterment levy". At last, some important suggestion will be proposed regarding the legal institution for "betterment levy"arise from establishing of" water resource conservation area" in Taiwan.