This paper is composed of two parts. The first part is a study of the attitude of Chinese intellectuals toward feng-shui and a review of feng-shui as a development from the Han dynasty. We find the attitude of the intellctuals quite divided, Skeptics think it contradicts Confucian principles. Others believe it because it is a part of the people accept it as integrated with neo-Confucian philosophy. From this study it is pointed out that there is a breaking point around the end of the Sung dynasty Before that, functional theory was based on the classical five sound system After that it was divided into the theory of land form arid the of orientation. The theory of land form as acceptable to almost all feng-shui professionals. The theory of orientation was divided further into different schools The second part of the paper describes the two theories as a basic conceptual structure of the Chinese way of looking at the physical environment and also as a way of applying it to practical circumstances. The land form as an interpretation of natural landscape has an ecological basis The orientation theory developed into a kind of mystical system which used the five elements and the eight trigrams The paper describes the process of divination using the five elements and the eight trigrams relating to space and the incorporation of the time factor with this As time went on, this process vas adopted by those diviners who dealt with personal fortunes Thus it developed into a complicated, all encompassing web that enveloped the whole of Chinese life.