Since 1980s the reform and open policy has brought about great changes in the income distribution structure of our country. People's income level has been raised significantly and their living standard has been improving observably. But still there are some serious problems sticking out especially the income gap between urban residents and rural population which has attracted the attention of all cycles and also given governments the cause of great comcern out is becoming wider and wider. In this paper the author inquires into the present situations and existing problems and tries to findout the possible solutions to these problems.