Abstract: Rural public service supply in China in the transition period cannot effectively meet the needs of rural populations, it needs to implement its institutional innovation. This article from the perspective of resource optimization leads to new model rural public service supply, namely: cross-administrative construction of rural public service system in villages and towns, optimally configured rural infrastructure and established the rural service centres, whose advantages are in terms of cost savings, greater efficiency and economies of scale. In addition, this article also builds appropriate institutional arrangements and relocates of the roles and functions of local government. It compensates for insufficient rural public service supply through new supply of resource optimal allocation mechanism.