Abstract: Abstract: To drive agricultural modernization of hilly and mountainous areas, taking "Idea-Technology-Demonstration" as the logical way of thinking, this paper discussed process of resource flow, optimized path, and integrated technology in the background of agricultural transformation, and took a case study of Xiaoyuan Village, Jiangjin District, Chongqing City. Analysis results revealed that an effective path of agricultural transformation is to link modern productive factors with traditional productive factors by the way of resource factors flow, and then to realize relocation and reproduction of new value by the way of resource factors integration. For China, based on the fundamental realities of the country and the practice of rural reform and development, flow and integration of agricultural resource factors have two basic paths: Land circulation and land consolidation. So, in hilly and mountainous areas, this way, i.e. the linkage between land circulation and land consolidation, can combine the two basic paths' functions together: One is adjustment function of property rights of land circulation toward the direction of the concentration of managerial authority, and the other is engineering reform function of land consolidation. We found that following this way could not only overcome the matching difficulties of field blocks and agricultural infrastructure after land circulation, but also make up for the defect of land consolidation engineering layout with the unit of field blocks of peasant household, which realized coupling and coordination of resource factors by answering to the demand of agricultural transformation, and at last established foundations of property right and engineering for agricultural modernization. According to the above idea, around the concentration of landholdings and the appropriate scale management, we designed resource optimized path (including decentralized optimization and global optimization) on the basis of land circulation; around the problems of land and its subsidiary resources' appropriate scale using, we reconstituted engineering technology system of land consolidation. Based on differences of resources integration objects and their technical features, the technology system included technology of tillage field construction and its matching technology (integrated technology of irrigation and water conservancy, matching technology of cropland road network), and technology of rural constructive land reclamation. These optimized path and integrated technology were applied to a demonstration site, Xiaoyuan Village. The results indicated that, before and after application, the rate of land circulation of the demonstration site increased from <10% to 36.5%, the proportion of appropriate scale management increased from <5% to 54.02%, the proportion of industrialized agricultural land increased from <10% to 73.01%, the index of agricultural industry diversification increased from <5 to 18.56, the number of field blocks per unit area reduced from 10.90 to 6.69, the shape index of field blocks reduced from 15.85 to 11.18, the thickness of effective soil layer increased from 35-40 to >50 cm, and the thickness of plough layer increased from 15-20 to >25 cm; simultaneously, the upgrade rate of irrigation guarantee was 13.15%, the added value of the density of irrigation canals and ditches was 16.73 m/hm2, the added value of field road was 41.39 m/hm2, the added value of production road was 87.04 m/hm2, and the upgrade rate of agricultural machinery power was 130.77%; the rate of rural constructive land reclamation reached 26.52%, the concentration ratio of new residential quarters reached 39.56%, the in-place processing ratio of dismantled offscum of house-site reached 81.45%, the in-place reuse rate of dismantled material of house-site reached 75.01%, the constructive land commuted ratio between rural and urban areas reached 70.24%, and the value-added level of house-site reclamation reached 89 195 yuan per household. In 2015, the production value of the whole village which the demonstration site was located in reached more than 20 million yuan, and the rural per capita net income reached 9 200 yuan. Based on analysis and results above, we concluded that, reconstitution of land consolidation technical system under the drive of land circulation, solves the difficult problems of mechanization, large-scale, and industrialization of agricultural production in the background of rugged landform, because application of the technical system is very conducive to transferring, centralizing, integrating from small patches of land to big blocks of land, and more easy to construct field blocks fitting for agricultural mechanization and large-scale. Meanwhile, rural constructive lands idle, abandoned, inefficient and given up, finish functional reconstruction and value transformation by the use of random, disordered and punctiform reclamation. Therefore, integration and optimization of land consolidation technical system based on land circulation will be able to supply the theoretical foundation and technical support for appropriate scale operation of agricultural land in hilly and mountainous areas.