Provincial government becomes a public agency under Executive Yuan with a function to oversight the autonomy of ”Hsien”, after amendment of the Additional Articles of the Constitution of the Republic of China on July 21, 1997. At the same time, provincial government is kept as public legal person, even without autonomy. Its functions, operations and organizations will be changed after the end of the term of current governor on December 20, 1998. This paper discusses the refection and organization for the new provincial government. For the purpose of enhancing the national competitiveness, the paper concludes the ”any matter shall fall within the jurisdiction of the province, if it is provincial in nature, its size shall be small and smart.”