Abstract: The reform of household registration system is a complex one.Emphasis should be given to issuing more powers and increasing more benefits，that is，through series of reforms，the peasants should enjoy the same rights and benefits as the citizens.Once equalization of basic service is realized in urban and rural areas，the household registration system that separates them will no longer exist.The reason that the population urbanization is far behind land urbanization in our country is that no breakthrough has been made in the reform of land system，thus land price scissors differential has become the major financial source of local government.Only by transforming the function of the government from economic construction into public service can we create systematic foundations for the realization of equalization of basic service in urban and rural areas.

Key words: reform of household registration system, equalization of basic service, reform of land system, transformation of government function