Under the background of China’s local financial industry developing rapidly, it is imperative to strengthen its regulation and supervision. According to the basic logic of modern financial supervision, based on the analysis of the current regulatory situation. This paper points out the problems existing in local financial supervision and discusses the possible regulatory path to local financial supervision. The research suggests that local financial regulation and supervision reform push ahead step by step as follows: distinguish between central and local financial regulation and supervision; establish and improve in regulations of local financial supervision; form a unified local financial regulator; gradually enrich the responsibilities and rights of local financial regulatory agencies; improve in the self-construction of local financial regulator.