Because of the rapid social transformation，the increasing diversity of community residents’ interest demands and the rapid rise of right consciousness，China has entered a period of frequent community conflicts. The vast majority of community conflicts are caused by the conflicts of interests among community residents. Only through democratic consultation，taking into account the reasonable demands of all parties，and finding the “greatest common divisor” of the interests of all groups，can conflicts and disputes be fundamentally resolved. The “Community Council” in Haidian District is an important exploration of community governance innovation. The “five step circular working method” focuses on resolving community conflicts and disputes from the source by reorganizing the process of community discussion and consultation，and to realize the comprehensive management of community conflicts and disputes by innovating the main body，form and organization mechanism of community consultation. The innovative value of this practice lies in the institutionalization，standardization and proceduralization of direct democracy at the grassroots level，which ensures the community residents’ right to know，to participate，to express and to supervise. These measures fundamentally resolve the community conflicts and disputes，and realize the harmonious and orderly operation of the community.