This paper empirically tests the relationship of intergovernmental grant and intraregional fiscal decentraliztion. The results show that‘doubling grant dependency'brings over concentraliztion of intraregional government.compared with county government.the power and resourse held by provincial politician are easily captured by regional elites, and boost the windfal1 effect and voracity effect.The movement of productive factor iS higher in intraregion than that of in— terregion.so the county government has stronger incentive to compete for growth.The arrangement of province directly controlling county can not deal with the fiscal embarassment faced by county govern ment, and the paper suggests the mandate model could be the prescription.