This paper analyzed the importance，model，and pathways of government policy in the process of the formation and development of industrial park from the perspective of theory. And it also summarized the characteristics of the policy according to the practical experience. At last，the policy suggestions were provided. Because of the huge difference of resources，environment，culture，economic and industrial base among regions，the regional development needs the guide and planning of local government. There are three models of cluster formation，spontaneous，bottom-up，top-down. The objects of policy typically contain state-owned enterprises，large private enterprises，SMEs，multinationals. For different objects，the policy effects are different. The role of government is especially important for Traditional Chinese Medicine industrial park because the Chinese Medicine industry relies on the resource，has high request for quality and urgent demand of industrial upgrading.