Abstract: Dual economic structure of town and country is the result of developing municipal industry unilaterally. It brought about a series of problems, such as large specific gravity of country population, low agriculture productivity, large income disparity between town and country, slow increase of peasants’ income, surplus of agricultural labor force, serious of obtaining employment and so on. Changing dual economic structure requests to establish a new relationship of town and country under market economic system, remove the obstacles of system and policies, and give fair treatment to the peasants. We should expedite the course of urbanization and expand space for transfer of country labor force. We also should further adjust distribution structure of national income and structure of finance expenditure, and step up support and protection for agriculture.