【Abstract】 There have been many studies about GUAN XI , all of them treat GUAN XI as an informal factor in organizations. Through investigating the governmental organization reform of Chinese villages and towns in A County of East China, however, we found that the operation of GUAN XI has been institutionalized in the local authority organization. In this process, the popular words in the local government create a situation that makes GUAN XI able to operate freely. The operation of GUAN XI connects with the work of local government and develops a rule in the governmental organization. We also found that the local government operated GUAN XI to gain the benefits from the whole organization in the country. While the government organized the whole process of GUAN XI’s operation, the operation of GUAN XI has been developed into an institution of the governmental work.更多还原