The Ministry of Finance has strengthened the clean-up of local debt since the implementation of the new Budget Law，and the relevant activities of local governments is being regulated accordingly. The “front door” has been opened while the “back door” is closed，the local government is allowed to finance its infrastructure construction by the means of special bond and PPP. In the process of implementation，however，due to various reasons including different understandings，both the special bond and PPP encounter some problems. The relevant compliance channel，especially that of PPP，is being questioned，and the investment and financing of local governments are facing embarrassment again. This article starts from the needs of local governments，analyzes their major pressure，dilemma and solutions，reinstate the significance of the special bond and PPP to the investment and financing of local governments. This article gets to the details of the practices of the special bond and PPP，decodes the misunderstandings of PPP，as well as the national policies of PPP，and provides the local governments’ investment and financing with effective advice.