Abstract: Project entry into village is the key to realize the revitalization of rural industry and sustainable development of collective economy. Based on the transaction cost theory and the synergistic effect theory of governance mechanism, combined with the case analysis of YQ Township in Anhui Province, this study interprets the success of " project entry into the village" and analyzes the reconstruction of the rural governance mechanism by production-oriented governance. It is found that the production-oriented governance can reduce the transaction cost of the project and realize the "project entry into village" by giving full play to the synergistic effect of bureaucratic mechanism and contract mechanism. When the transaction cost of contract mechanism is lower, it will lead to the replacement of bureaucratic mechanism, but when the degree of non-marketization is higher, it will inevitably choose bureaucratic mechanism. In addition, the bureaucratic mechanism is the basis of the village "project", and the embedded contract mechanism can avoid the alienation of the governance goal of the bureaucratic mechanism, so that the project in the village "can be implemented". The contract mechanism is a process in which the project is endogenously embedded in the village, and the coordination with the bureaucratic mechanism can avoid the weakening of the governance ability of the contract mechanism and make the project "sustainable". Through production-oriented governance, the key pain points of rural governance can be solved from the aspects of governance subject, property right structure and distribution structure, and then a solid governance foundation can be laid for "project entry into village".