This article has Systematically described and analysis Hangzhou discovery and practices in the establishment of “City of quality life”，from the angle of government’s public service innovation and the angle of the social safety net improvement. Hangzhou has implemented series innovative initiatives to enhance “People-based government”，such as “Open decision-making”，“Comprehensive Review”，and “Administrative Examination and Approval Service Center”. The strengthening of Hangzhou Social equity and security system has directly resulted in the obvious enhancement of social security system’s protective and supportive capacity towards citizen. The setting up of Hangzhou housing ensured system could significantly increase the living quality of the low-income family. And the distinctive social assistance career has greatly improved the vulnerable group’s quality of life，such as to carry out “Chunfeng Action”. At the end，this article analysis Hangzhou problems and Challenges in the course of the establishment of “City of quality life” and put forward corresponding countermeasures and suggestions combined with the background of the international financial crisis.