This chapter discusses the historical process of distribution system reforms from unitary Distribution according to Work（DAW）to Distribution according to the Contributions of Production Factors（DACPF）. And simultaneously analyses the innovations in distribution theory along with the changes in distribution system，especially recalls the advance of the theory of DACPF，expounds the value bases of DACPF and its policy implications，demonstrates that all kinds of production factors participate in value creation，which provides value bases for their participation in distribution according to their contributions，and points out that non-production factors’ participation in distribution according to their contributions doesn’t mean exploitation basing on this theory. There’s no positive connection between exploitation and private ownership，and thus DACPF，elimination of exploitation can be parallel with protecting private property and developing non-public economy. Some policy suggestions are put forward for adjusting the income distribution relations，and eliminating the inequitable income distribution.