Income growth and income distribution are closely related with people's income level. The paper studies resident's income growth and income distribution in China in the year of 2010. Generally speaking, both urban and rural residents enjoy significant increase on income level throughout 2010. Meanwhile, the overall level of income inequality demonstrates a decreasing tendency in 2010. The paper suggests that it is China's strong economic growth which leads to the increase of income in rural and urban areas. Moreover, the narrowing gap of income inequality can be attributed to factors such as wage increase for the peasant workers, the rising prices of agricultural products, and the high level of inflation rate. <<