This paper chose three types: Zigui, Yunyang and Shibao which are included in the head, middle and end of Three Gorges respectively, expecting to show the whole situation of the migrant township governing institution. By a concrete analysis of the three migrant township construction governing, there is a explanation which the problems such as social, economic, town planning, environment conservation, regional economy and so on, derive from institutional obstruction. The constraint of the institutional factor with objective and subjective reasons in the course of township construction, results in the relative behind economic situation in Three Gorges' reservoir region. The characteristics of urbanization of Three Gorges is not only in accordance with China's but also different. Especially, its township construction connects with the migrants' settlement of region compactly. In fact, the Three Gorges' township construction should be "migrant township construction". Migrating serves as one of the most important opportunities, developing Three Gorges' towns. Directed by institutional evolution and innovation theory, with the reality of Three Gorges reservoir region, firstly, the paper inputs the market mechanism to improve the institutional innovation of the regional township construction, which could save institutional costs esp. transaction costs and improve the quality of township construction. On the other hand, the institutional innovation is beneficial to the local governments, which accelerate the reform and change functions. In view of the region needs an opener institutional environment to achieve the institutional arrangement of the institutional innovation. The paper inputs an organizational concept, that is, non-profit organization (NPO). The NPO help the migrants (local people) to share the process of township development, which speeds up the development of the market, improves reservoir region urbanization and migrants' settlement. In short, the paper brings forward the suggests of institutional innovation which help to achieve the goal of short term- migrants' settlement and the one of long term- Three Gorges township future development. |