Abstract: Based on an analytical framework to build a sustainable model of local government debt, data on 1997-2012 are used to estimate the optimal size and actual size of local government debt on the sample area in 2012. It is found that the current local government debt are sustainable; The eastern is higher than the western about the actual size of government debt, this feature of the optimal size is not obvious; debt overdue ratio shows the eastern is higher than the Western, but the sample region is still in the safe area value. Local government debt financing still has some space, but the government need to strengthen supervision.