This paper aims at exploring and examining the local redevelopment institution in peripheral Taiwan from the perspective of political economy and institutional organization. The paper based on the relevant literature and experiences not only explores the concept and meaning of the institutional organization for local development, but also tries to discuss the important role of institutional framework for local development. We select some northern coach areas with higher growth development in Taipei metropolitan for discerning their structure change and development pattern. We also propose suggestions of well primary institutional mechanism for their future development.