Abstract: China adopted the most stringent farmland protection system and the planning control measures to strengthen the protection of land resources and basic arable farmland. However, these mandatory regulatory policies and protective measures are implemented with a flaw of lacking economic compensation mechanism. The incomplete policy system caused some social unfairness or rent-seeking behaviors which result in the distortion and disequilibrium in the welfare distribution of the associated interest groups. Based on a detailed analysis of the evolution of land planning control system, this paper examined the institutional defects causing the disequilibrium of welfare distribution of different interest groups under the planning control system. results suggest that when designing the land planning control system, we should (1) respect and protect property right of the interest groups; (2) establish the economic compensation transfer mechanism from well controlled zones to loose controlled zones to narrow the regional economic gap and strengthen the regional division to promote socio-economically and ecologically coordinated development; and (3) make efforts to deal with the illegal usage of land and improve the effectiveness of planning control assessment mechanism to optimize the spatial layout of the land constantly.