Almost every observer agrees to the fact that numerous Chinese county and township governments are short of fiscal resources, overgrown with officials and employees, and administratively inefficient. This paper utilizes data on Anhui province to demonstrate the existence of the economy of scale in the province: the larger the population a county has, the smaller the fiscal expenditure per capita and the ratio of people supported by public finance to the total population of the county. Therefore, a good approach to enhancing administrative efficiency at the county level in China is to expand the population size of counties.