Abstract: Due to the less use and the less restriction in market mechanism, some prominent issues are caused by the loan that is raised by local governments, such issues as the heavy demand, the high cost, the low efficiency and the insufficient public service. And it is necessary to clarify the relationship between governments and market, transform the functions of local governments, make full use of market mechanism, improve the direct marketing financing channels of local governments, promote the close cooperation with social capital, and innovate the marketing mode of public service in order to make it balanced the relation between the reasonable debt demand of local governments and the debt risk control.