The paper studies the establishment process of the ecological livestock cooperative of Q County in Qinghai Province. It has evolved from the phrase when farmers had the will but lacked the strength，the phase when the government offered support，to the phase when the joint effort of state and farmers led to successful management of grassland recourse through the ecological livestock husbandry. The research shows that the dilemma of collective action was solved partly by the management structure of ‘state-elite-society’ with the support of the state and the trial and error action of the society. It is essential to relate to the state and society in explanation of grassland management experience in China，which is an important part of global practice.