Abstract: In order to explore a new rural cooperative in urban and rural areas, this study researched development motivation of new type rural share cooperative in Chongqing based on random sample survey data of 500 households and 100 grassroots cadres in 12 counties (cities, districts) from the perspective of institutional economics. The results showed that low economic efficiency of agriculture and the income gap between urban and rural residents were the root causes of cooperative system innovation. As the most direct producer and operator of agriculture, farmers thought that they could get high and stable income through the formation of new type rural share cooperative. Thus, farmers tended to form a primary action group to chase more external profits. Most rural grassroots cadres believed that new type rural share cooperative was an effective way to promote the integration of resources, improve the level of agricultural industrial management and speed up the construction of new countryside. Thus, both primary and secondary action group showed the willingness to participate actively, and a new type of rural share cooperative system innovation will come out.