This article aims to discuss the formation and performance of land-orientation investment． Based on observation of county A’s and county B’s GDP, fixed investment, suggestion of annual plan of land use, actual annual plan of land use, and land transaction announcements, the authors conclude that although county B is far behind from county A in economy development, they are taking a homogeneous competition, which leads them to have same industrial structures that block their comparative advantage developments． At the same time, the principle of municipal land bureau uses to distribute the amount of industrial land to each county is how to make a balance among all the counties, not how to improve productivity of land use．