Abstract: This paper in view of the deficiencies in the current land expropriation system, confusion and deviations in the actual operation. As well as the simple resettlement, unclear responsibility, lack of suitable social security system for the landless peasants, their legitimate rights and interests can’t be effectively protected. By using the sub-game perfect Nash Equilibrium Model to elaborating the mechanism of government and farmers involved in the land expropriation, to analysis their cost-benefit in different compensation and allocation mode for optimization of land strategy. By using this model to analysis Zhuji city District in Zhejiang province, suggest the government choosing reasonable resettlement, intensify the implementation of involvement, legal regulating the acts in the process of land acquisition.