The Rural Regeneration Act is enacted to facilitate the rural sustainability, revitalization and regeneration, to improve production infrastructure, to conserve rural ecology and culture, to upgrade quality of life, and to construct a new rural prosperity and beauty.

For the purposes of implementing the Act, the term “competent authority” denotes the Ministry of Agriculture at the central government, the municipal government, and the county or city government at county or city levels.

For the purposes of implementing the Act, the following terms are defined as follows:
1. Rural community: Rural villages and settlements with a certain scale and their neighboring areas related to the community integrated development; and aboriginal tribe area shall be included.
2. Rural regeneration plan: a community development plan for rural sustainable development, revitalization and regeneration,which is based on the community demands and proposed by the local community organization or association.
3. Rural regeneration and development zone: a land area designated by the municipal government and county or city government through a plan prepared and submited to the central competent authority for approval in order to facilitate land revitalization management and meet rural development demand.

The policy implementation of rural regeneration and revitalization shall comply with following principles:
1. Centering on holistic construction of existing rural community with a supplementary measure for individual housing modification.
2. Implementing a comprehensive planning and construction, which integrates the agricultural production, industrial cultural, natural ecology and spatial re-use.
3. Creating incentives for collective living and constructing rural communities with modern qualities of life and traditional characters.

The central competent authority shall direct the overall resources of rural planning and construction with reference to the regional policy of agricultural development and to coordinate all constructions and projects of rural communities proposed by various governmental departments.

The central competent authority shall prepare a policy guidance of rural regeneration, and submit to Executive Yuan for approval; its amendment procedure is the same.

In meeting the needs to implement the same rural sustainable development and revitalization, the central competent authority shall establish a rural regeneration fund of one hundred and fifty billion New Taiwan Dollars within budgetary period of ten years after the Act is enacted.
The sources of the said rural regeneration fund includes:
1. governmental input of annual budgets,
2. donations,
3. interest revenues of the rural regeneration fund, and
4. other revenues.
The expenditure of rural regeneration fund shall on following purposes:
1. Implementation-related expenses of the integrated environmental improvement, public facility construction, individual housing modification, industrial revitalization, cultural conservation and revitalization, and ecological preservation,
2. Implementation-related expenses of the policy guidance of rural regeneration, mass plan of rural regeneration, annual action plan of rural regeneration, and plan preparation and reviewing of the rural regeneration and development zone,
3. Subsidization to the maintenance and modification of traditional building and nieghboring areas with historical cultural and environmental landscape characters,
4. Expenses for conservation, promotion, application and advertisement of rural heritages, cultural assets and industrial cultures, which are worth to preserve,
5. Implementation-related expenses of rural survey and analysis, and improvement, planning and construction of rural production infrastructures and service functions of individual rural community,
6. Expenses for promoting recreational agriculture and rural tourism,
7. Implementation-related expenses of manpower training and cultivation for the planning, construction, leadership and sustainable management of rural community, and advertisements of rural regeneration and revitalization,
8. Administration and general service expenses, and
9. Other expenses related to rural regeneration and revitalization.