Abstract: In this paper,we use the data of national thirty-one provinces’(autonomous regions,municipalities directly under the central government) land assignment income from year 2002 to year 2011 to research influences of local government competition and central government policy on different development stages of land finance by using cluster, principal component and SYS- GMM analysis methods, and make some policy evaluations. Through the study we find that different regions in China can be roughly classified into four stages according to land financial development situations:”post land finance stage”,”land finance vigorous stage”,”land finance relatively vigorous stage” and “land finance development stage”.Specifically, for the majority of land finance development stages,local government competition will further increase the scale of land finance,while the central government policy will effectively control land finance to continue developing,but the tax system can not fully explain the reason of land finance’s rapid development.Hence,we make recommendations to reform achievement evaluation system,implement the land finance governance policy,deepen the reform of tax system and rationally plan the use of land.