At present，China’s local governmental debt scale is huge，demonstrates the trend of continuously expanding，and has bigger potential risk such as debt payback pressure，unreasonable debt structure，obvious debt implicitness trend and disordered management. The accumulation and risk expansion of China’s local governmental debt will head off the economic development pattern transition，reduce economic development quality，produce “squeezing out effect” on private investment，make the economy hold higher inflation rate， trigger higher housing price，be harmful to the reform of income distribution and deteriorate the credit of governments and financial system. The causes for local governmental debt are diversified，including financial system，budget soft-constraint，difficult local government finance increase，investment-driven-style economic growth mode，local carders’ political performance evaluation mechanism and so on. Local governmental debt risk can be controlled and solved by rapidly raising the money mechanism for debt payback in short-term such as assets securitization，introduction to private investment and selling state-owned assets，by necessarily implementing practical reform in long-term such as building market-oriented local governmental financing mechanism，changing governmental duty，reforming system of tax distribution，enhancing the management of central government on local governmental debt，building early-warning system for debt risk and so on.