To examine the relationship between referendum democracy and representative democracy, this paper tries to analyze the context out of which the debate on democracy of referendums originated, starting from the 2000 alternation of power up until the 2004 presidential election in Taiwan. Furthermore, this paper also discusses the power of public opinion which led to the debate on direct democracy and the possible role referendums and direct democracy could play in Taiwan. In this paper, it is argued that the debate on referendum democracy was caused by regular elections, contingent crisis (crisis of SARA), and the competition among political elites. Apart from representative democracy, referendum democracy can be another formal way through which civil rights are directly expressed and realized. Furthermore, institutionalized referendum democracy not only competes with representative democracy, but it can also counterweigh the political blocking of representative democracy. Finally, although the debate on democracy through referendums was caused by the competition among political elites under the lurch of sovereignty, it might also Create a democratic way which can directly convene the public opinions.