This paper examines the reform of the land administration system (LAS) in China since 1978, and its benefits, shortcomings and options for further reform. The LAS reform has had significant effects on land use and economic development. It has created a more effective land use system and a market for transfers of land, in particular nonagricultural land. Meanwhile, a basic system of land administration has been realized. Important legislative changes accompanied the LAS reform. Imperfect aspects of the LAS, however, result in some negative effects on land allocation such as the rapid loss of arable land to the non-agricultural sectors, very small land use scale and degrading land quality. A framework of further reform measures dealing with these problems is presented in this paper.