The present paper,reviewing the past scholarship that discusses the internal contradictions and lake recla-mation of eastern Zhejiang's hydraulic society while paying little attention to the relationship between tax-payment and property rights,attempts to illuminate the complicated interrelationship between tax reform,local finance and lake reclamation since the Jiajing reign(1522-1566)with a view to revealing the in-terdependent mechanism involving institution,local administration,and hydraulic order.