Abstract: Village forestry station is the basic unit of forestry administration. Its function has largely changed after the reform of the collective forest tenure. Firstly, the background of function change was described in this paper. Secondly, the authors analyzed two aspects of reform of forest property right, i.e., the goals of forestry stations and the process of producing lumber and forest by-products. Some of the functions were no longer meet the capabilities of forestry stations and the needs of the farmers. Finally, some appropriate means for implementing the suggested changes were proposed in this study.