This was a case study to describe and analyze the social conflicts erupted during the course of a scenery district development at Hill Gold Bull. The inspection of all the profit-seeking parties involved in the conflicts revealed that these conflicts in a traditional rural area were not only a result of competition for profits but also a struggle between two intellectual points of view. A new power network gradually took shape in the process of applying various strategies to resolve the conflicts. The reproduced power structure did not focus on the winner or the loser but reflected a process of both sides “learning” from each other to form a new relationship. The study also urged researchers to note that social conflicts at the grass roots should not be attributed to the withdrawal of the state power; on the contrary, they actually facilitate the building of improved state power at the grass-roots units. This was a case study to describe and analyze the social conflicts erupted during the course of a scenery district development at Hill Gold Bull. The inspection of all the profit-seeking parties involved in the conflicts that that conflicts in a traditional rural area were not only a result of competition for profits but also a struggle between two intellectual points of view. A new power network gradually took shape in the process of applying various strategies to resolve the conflicts. The reproduced power structure did not focus on the winner or the loser but reflected a process of both sides “learning” from each other to form a new relationship. The study also holds researchers to note that social conflicts at the grass roots should not be attributed to the withdrawal of the state power; on the contrary, they actually facilitate the building of improved state power at the grass-roots units.