On November 14 evening, the State Council issued a notice on the local government debt risk contingency plan, putting forward specific requirements and methods in handling local government debts. After studying the content of the notice, Anbound suggests there are three points needed to be grasped. First, the Central Government will not be responsible on local debts; second, the local government will have to bear the responsibility of the local debts; third, plans are putting forward for the fiscal reorganization of the local governments. The notice indicates a new era of local debt supervision, where the local governments must understand the situation and change the way of thinking while shifting the focus to utilizing social capital, and at the same time attach importance to the development of environmental construction to adapt to new developments.