Abstract: Taking 4 villages lying in Pantang Town, Taoyuan County, Hunan Province as examples, the developing types and income characteristics of dooryard economy were analyzed and 4 mechanisms of its development were expounded:land which can absorb a lot of labors, comparative advantage's drive, scientific technology's promotion and innovation mechanism's force. In the end, 4 conclusions were put forward: Dooryard economy is the ladder to agricultural modernization and the pivot of the rural economy structure's adjustment,scientific technology is the important measure of improving the dooryard economy and innovation mechanism is the important factor during the development of dooryard economy.