Abstract: On the bases of eco-economics principle, the structure, function and the characteristics of eco-economic system of Dianwang Village, Zhenyuan County, Gansu Province have been analyzed. It has been pointed out that the fragile ecosystem and the irrational economic structure are the major causes of the vicious circle of eco economic system of the village. Countermeasures and approaches for realizing the improvement and development of both ecological system and economic system of the village have been proposed.