The collectively owned rural land has been managed by a three-tiered governance system: township, administrative village andnatural village (Ho, 2001). However, how much each entity isentitled to has never been clearly delineated, and the ownershipboundary of the collective is not fixed. Thus, collective land owner-ship is ambiguous to its nominal owners (Cai, 2003). With theincomplete and non-tradable status of land use rights over col-lective land, the problem of land fragmentation remains highlyintractable.implemented through-out the entire country.