Municipal　sewage　treatment,　with　the　nature　of　quasi-publuc　goods[1],　is　public　utilities,　and　combines　the　characteristic　of　both　pure　public　goods　and　private　goods.　Therefore　its　selection　of　investment　and　financing　mode　is　also　different　form　those　of　pure　public　goods　and　private　goods.　There　are　always　inadequate　investment　funds,　inefficient　use　of　funds　and　other　issues　in　the　municipal　sewage　treatment.　Based　on　the　actual　situation　of　chinese　investment　and　financing　development　of　municipal　sewage　treatment　and　dividing　the　source　of　funds　into　two　categories,　the　government　expenditure　and　private　funds,　this　paper　makes　an　empirical　study　on　the　financing　source　in　municipai　sewage　treatment　by　using　econometrics　methods,　and　thus　finds　the　effective　financing　solution　on　the　mobilization　of　sewage　treatment