Based on analysis of science, economic development of China and current public opinion, a free hukou system is advocated in the paper. Meanwhile the default of not taking into consideration of public product consumption is pointed out. Then the irrationality of adopting a free hukou system under current conditions of financial revenue and expense level of China is reasoned by introducing the impact of urban population scale on urban population's utility level under the factor of public products consumption. It is pointed out that China should impose proper control on populat ion by starting and developing urban labor market and promoting input of public products, which should be the direction for development of China's existing hukou system.
