In the Sung Dynasty, there were three levels of local administration, the highest level being the provinces (Lu路). There were four heads in each province, namely, the Zhuan Yun Shi (轉運使), T i Dian Xing Yu (提點刑獄), Ti Ju Chang Ping (提舉常平), and the An Fu Shi (安撫使). Among these, the zhuan Yun Shi was the most important. Finance, local administration, military matter and legal affairs were entirely under the Zhuan Yun Shi's control. For this reason the Zhuan Yun Shi could have a great influence on the quality of management of lacal government officials, living standard of the citizens, treasury situation and national defence matters. It is thus worthwhile to look into the issue of the Zhuan Yun shi system. Some scholars said the the Zhuan Yun Shi had not regular power and was under the control of other Jian Si. In fact, the duty of the Ti Dian Xing Yu was taken over by the Zhuan Yun Shi because of the continual abolishment of the Ti Dian Xing Yu. Owing to the fact that the emperor (Shen Zong) put the Ti Ju Chang Ping in an important position, its power could be compared with the Zhuan Yun Shi's and Ti Dian Xing Yu's. But its power lasted for only a short time. Furthermore, the political position of Ti Dian Xing Yu and Ti Ju Chang Ping was inferior to the zhuan Yun Shi. So, how could the Zhuan Yun Shi be put under the control of the Ti Xing and Ti Chang? Thus, this paper discusses the establishment of the Zhuan Yun Shi and its political position and influence under the Lu system in the Sung Dynasty.