necessary condition for economic development. World Bank Annual Development РReport 1994 said that “infrastructure is either an engine for economic Рdevelopment or the wheels of economic development.”According to the data and the cases, chapter 4 summarizes the production Рstatus and mode of production of China’s urban infrastructure, analyses Рproblems exist in the construction and management and leads in Western Рexperience and practice of urban infrastructure construction. The most Рprominent advantage of the market lies in production efficiency. However, the Рproduction of natural monopoly and externality of infrastructure market cause Рthe flaws. Although there are varies disadvantages in the infrastructure Рprovided by the government, government intervention in the market make up for