Abstract: Serious problems of low level repeated development in China's Hi-tech Industrial Development Areas (HIDAs) are studied in this paper. Through a compr ehensive analysis, we find that the main reason lies in that the group behavior of local government's HIDA industrial policies brings about unreasonable results in the view of the whole country, i.e. repeated development and wasting resourc es. The local government's bias to the direct supporting for its HIDAs and the enterprise's behavior of seeking for lease will cause low level repeated develop ment or even the bad coin driving out the good one. Suggestions are proposed fi nally that the governments should change their strategies of HIDA development, i ncluding ceasing the direct interference to the HIDAs and making full use of the market adjusting function to keep the .good projects surviving and eliminate th e bad ones.