We observed that the political quality had not been promoted in the process of the democratic transformation toward the democratic consolidation. After downsizing of Taiwan Province, the status of local municipality must have been greatly elevated. Nevertheless, the local political ecology shows that local fraction, financial syndicates and mafia have dominated the local political and economic resources. This phenomenon has seriously influenced the development of Taiwan’s democracy. To raise and strengthen civic consciousness is a key factor to promote the democratic quality. Due to the lack of civic society tradition, the deviated civic education, and the abnormal development of local fraction consciousness, the establishment of civic consciousness of community has long been overdue. After years of endeavor, referendum law passed on Nov. 27, 2003. The scope of referendum not only includes national referendum but extends to special municipality and county the rights of initiative and referendum which confer on community residents more room for autonomous resolutions regarding public affairs. In order to strengthen community autonomy and realize grass-root democracy, this article suggests the necessity of modifying the system of local referendum to expand on the effects of referendum law. As long as the foundation stone of local autonomy has been laid, the elevation of democratic quality is expected in the near future.