Abstract:An analysis, based on taking urban public infrastructure as an example, indicates that the supply of urban public goods in western China has such characters as rapid and unstable growth of urban construction funds, big growth difference between different regions, big improvement of water and gas supply for urban life approaching to national level gradually and narrowing the gap with eastern cities, certain alignment in supply contents, giving priority to the solution to the difficulty in drinking water and taking bus, and incomplete focus on urban environment protection. As a result, sustainable and stable investment mechanism, supervision mechanism for monopoly business, reasonable and proper compensating mechanism and institutional innovation mechanism must be established.