In this study the involvement of the community during expropriation and the utilization of the compensation money of the expropriated farmers are investigated taking Bahir Dar and Debre Markos peri-urban areas as case studies. Survey research methods were applied for data collection. The data were analyzed by means of descriptive statistics. According to the results, there is high land tenure transformation in both study areas.

Land fragmentation and the small size of land parcels are still the major bottlenecks for agriculture sustainable development in rural China, and an efficient land rental market could consolidate land plots and realize agricultural management at a moderate scale. However, transaction cost is still the main obstacle of land transfer. It is, therefore, essential to reduce the excessive transaction costs in the process of transfer; the primary task is to identify the roots of transaction costs.

To promote rural revitalisation, China’s central government revised the land administration law to allow rural collective construction land (RCL) to be traded in the market and attract private and financial capitals into rural investment and development. However, the land value appreciation income of the market access is closely related to geographical location. Hence, the value appreciation of RCL is enormous in villages around cities and towns. By contrast, the land value appreciation of RCL is low in villages away from cities and towns.