Employing an NIE framework, this chapter analyzes how the “Linkage” Policy reshapes China’s land governance institutions. Specifically, it examines three key transformations under the Linkage implementation: (1) the decoupling of urban land supply from direct rural land acquisition to allowing development rights to be traded as quotas; (2) the reconfiguration of property rights by separating rural land development rights from collective ownership; and (3) the restructuring of stakeholder roles, empowering local governments, private developers, and village collectives in land transactions. Using Chengdu Municipality as a case study, the analysis demonstrates that the institutional innovations, such as the Chengdu Agriculture Equity Exchange (AEE), have formalized the TDR market, reduced transaction costs, and increased liquidity of TDR quota. Moreover, this policy has significantly enhanced land-use efficiency by linking urban expansion to rural land consolidation. Despite these successes, this chapter argues that the policy effectiveness still hinges on robust multi-stakeholder coordination.