Abstract: To clarify the inner relation between the valley economy and rule of law, this article analyzed and discussed the core problems about the protection of law in valley economy. The necessity and importance of protection of law in valley economy which were contributed to enrich the theory system of valley economy were carried out theoretically through related explanation and demonstration. The practice of valley economic development in Beijing and related theoretical researches showed that there was obvious deficiency in the studies about the protection of law in valley economy. In this article, valley economy was regarded as an economical and social phenomenon and was reinterpreted using the method of whole explanation on the basis of the researches in the past from the perspective of social phenomenon and standardization of the system. Valley economy belonged to the rural economy in essence, and had the attributes of regional economy and intensive regional characteristics. On this basis, this article tried to settle the nomocracy meaning of valley economy and its objective demands to rule of law. At the same time, necessity of protection of law in valley economy and its two core issues which were the position and role of government and the rights protection of peasant were discussed. The important significances of theoretical researches about the protection of law in valley economy were clear through the argumentation and analysis.