The article examines the links between the welfare state and the local cultural policy in Taiwan. It provides a way to analyse local museum policy. This research is based on the development welfare model drawn up by Lee and Ku(2003). The model posits that the aim of social policy is to maintain the status quo and to connect different societies. The research result indicates there being a connection of “high culture” and traditional culture in Taiwan. The development welfare model can anticipate generous, long term subsidies from Government. Ta i w a n’s Council for Cultural Affairs supports cultural services by appropriating funds to art institutes, and the local museum policy is established to practice decentralization as well as cultural citizenship. However, the role of Taiwan’s Government in local museum policy has changed due to the shift of social conditions. The focus now is more on economic growth than on cultural rights.