Abstract: As the construction of a government ruled by law has become a paradigm of modern governments, it is of intellectual necessity to analyze the legal bases of Theory on Government Ruled by Law in the perspective of thought history. In Second Treatise of Government, Locke demonstrated the transformation from natural state to civil government and related property theory, and expounded systematically limited government theory on the base of foregoing theories, thus provided practical and realistic theoretical bases for modern liberal states and governments ruled by law, which played a far-reaching influence on modern Theory of Government Ruled by Law.