In the era of post agricultural tax，the project system has become an important window to observe the relationship between state and peasants. Based on the investigation of Z Township in Northwest Zhejiang，dissipating project resources and subcontracting project interests have prevented national funds from complete fall. At the same time，the local government respond to the loss of project capital to the countryside through internal control system. In this process，the project system constantly shapes the national image among peasants. Therefore，regarding the relationship between state and peasants，how the project system can shape the national image among them should be analyzed from two levels：the central government and the local government. On one hand，from the relationship between local government and peasants，the project system has strengthened the local government’s motivation of self-benefit and undermined the relationship between cadres and the masses. On the other hand，from the perspective of the relationship between the central government and peasants，those‘going to the countryside’projects have consolidated the national identity of peasants，which to a certain extent demonstrates the governance performance of the project system，and indicates achievement of the embedded autonomy of the state.