Since its rise in the 1960s, Participatory Democracy has been widely studied and discussed. It is a theory that emphasizes the importance of using the method of participatory democracy to compensate for the shortcomings of representative democracy. Yet the most important tool to practice participatory democracy is the conduct of referendums. Referendums can be held to enhance the legitimacy of policy and solve contentious issues. The conduct of referendums also has the advantage of broadening citizenry participation and arousing the sense of democracy among the people. Because of all this referendum has become an important subject of discussion in the political as well as the academic circles these days. In the view of Ranney, one of the ultimate objectives of practicing democracy lies in maximizing the potential value of citizenry. And popular participation in the process of decision-making is the best way to realize that potential value. In a civil society, the people many freely discourse, exchange views and express their concerns over public issues. A civil society is the basic venue where political participation can take place. On the other hand, free participation and expression is the prerequisite for the development of a civil society. The so-called “democratization” refers to the process of the expansion of civil rights or civil status. As stressed by Samuel Huntington in his Linear Model theory, democratic development is a gradual evolution of power from civil rights, political rights to social rights. This also suggests that democratization is a series of social, political and economic changes—a long march to democracy. The conception of referendum has its theory originate in these principles: Sovereignty is vested with the people; public consultation; political equality and the rule of majority. Referendums can be held to fulfill these purposes: to supplement the insufficiency of legality; to play the role in setting agendas; to curb dictatorship and power abuse by politicians; to intervene in areas where official conduct may involve conflicts of interest; to advance political participation by the people. Therefore, the principal aims of establishing referendum legislation are to foster people’s involvement in public policies, instill the sense of responsibility for civil participation and cultivate the belief that people are their own masters. The exercise of referendums is the expression of people’s wishes to the maximum and will have far-reaching effects on the deepening and consolidation of democracy. This article intends to provide an appraisal of referendum legislation, hoping to achieve the following objectives: 1. Provide a historical viewpoint; 2. Create a pluralist democratic system; 3. Improve legislation; 4. Build a system model and promote group learning; 5. Create a framework conducive to system changes. In sum, it is not easy to enact referendum laws. The legislation’s sponsors (the political and legislative elite) must be conscientious and forward-looking. The law must serve as a keystone on which future changes can be made. When social momentum builds up and calls for reforms begin to emerge, political leaders and policymakers must respond positively. This would help raise the willingness of the people to participate in civil activities. All in all, well-designed legal framework is of great importance to the conduct of referendums.