After a long-term integration of the European Union, there sill lacks any clear and precise principles in current Treaties for the division of competences between EC/EU and its member states. There exists only an extensive principle of conferral in Treaty establishing the European Community and Treaty on European Union, but still lacks provisions regulating division and categories of competences. Therefore, principle of competence division inevitably stays in a changeable and unsure situation, as well as provokes a great deal of controversies. With a view to solving the above-mentioned problems, "Limits and division of Competences" becomes one of the essential issues for EU reforms in the Laeken European Council of December 2001. After debates in the European Convention, Draft Articles I-9 to I-17, regulating competences between EU and its member states, are proclaimed in the Draft Treaty establishing a Constitution for Europe adopted by the European Convention in June 2003. This is the first time and a pioneering work to put these provisions in the Treaty. After 18-month negotiations, member states finally reached a compromise, and make some revisions of the Draft Treaty establishing a Constitution for Europe. In October 29th 2004 the Treaty establishing a Constitution for Europe has been signed by the EU member states. In this version, Article I-11 to I-18 regulate the competences of the EU and its member states. This thesis will draw an analysis in this issue, the Division of Competences between EC/EU and its member states, as well as discussing its evolution and future development.