China’s state planned land use system,including regulations such as setting planned quotasfor land use,basic cropland preservation,and pursuing a balance between the conversionof arable land into non-agricultural use and the supplement of new agricultural land,hassubstantially constrained the economic growth of industrial provinces in China.This articleexplores the innovative reforms adopted by Zhejiang Province through land developmentrights (LDR) transfer within a locality and LDR trading across localities.We argue thatthere is a“Zhejiang model of LDR transferring and trading,”which,we believe,hassignificant implications not only for fostering an efficiency-enhancing market for landdevelopment rights and agricultural Iand preservation,but also for optimal use of land anda more balanced regional development.One important policy issue relating to China’srural land system is that under China’s land requisition system,farmers are usually undercompensated for urban land-taking. China’s state planned land use system, including regulations such as setting planned quotasfor land use, basic cropland preservation, and pursuing a balance between the conversion of arable land into non-agricultural use and the supplement of new agricultural land, hassubstantially constrained the economic growth of industrial provinces in China.This articleexplores the innovative reforms adopted by Zhejiang Province through land developmentrights (LDR) transfer within a locality and LDR trading across localities .We argue thatthere is a “Zhejiang model of LDR transit and trading,” which, we believe , hassignificant implications not only for fostering an efficiency-enhancing market for land development rights and agricultural I and preservation, but also for optimal use of land and more diversified regional development. One important policy issue relating to China’s ru land system is that under China’s land requisition system, farmers are usually undercompensated for urban land-taking.