Building a public service government is one of the aims of Mainland China's government in late 1990s. In the remote rural areas, the disintegration of the people's commune system had weakened the self-sufficiency of the public service system in these areas. The government was unable to provide adequate social welfare to the growing needs of the society. This research is aiming to highlight the influence of the economic reform on the government and the society. At the beginning, due to the shortage of rural public service, the rural residents should pay more money on education and medical treatment, which became a heavy burden. And then, the central government provided more financial support on rural public service. However, because of the information deficiency of the central government and incentive insufficiency of local governments, there is a great contradiction in the ”supply and demand” structure in the provision of public service in rural areas. In order to solve the contradiction, there are two premises for the China government, one is promoting the social participation of public decision, and the other is encouraging the participation of the market and the third sectors in the supply of public services.