Abstract: Residential land use right circulation in rural areas is common in China. Based on the survey data of Ningbo,this paper summarized the beneficial practices, analyzed the existing problems and influencing factors, and providedsome suggestions. Results showed that useful practices of Ningbo, including varied forms of rural residential land useright, promoting mortgage of rural residential land use right, different means of building rural residential houses, creating information system of rural residential land, were helpful to raise rural land use efficiency and farmers' income. At the same time, there are many existing problems, including unoccupied rural residential houses, illegal rural residential land use right circulation, illegal house building and “one household, multiple housing lands”, etc. The reasons of causing these problems include the practical demands for the transfer of the rural residential houses with the development, the implicit transfer of rural residential land because of the limit of the law, lack of supervision for the transfer, and the imperfection of laws and regulations. This paper suggests that the government should reform rural residential land use right system,perfecting the laws and regulations of rural residential land, and strengthening trading market of rural residential landcirculation.