Abstract: To further reveal the core mechanism of the induced-to-compulsory institutional transition of rural collective economy in the Pearl River Delta, this paper focuses on rural areas in central urban areas of megacities where urban-rural contradictions are most acute, constructs a 'power-space-right' analytical framework, and empirically analyzes the internal causal mechanism of institutional transition by using the full-cycle rural collective economy policies of T District in Guangzhou CBD since its establishment as a sample. We find that the collective economy policies of T District have transformed from induced to compulsory institutional transition; its essence is the game between public power and private rights in power allocation to adapt to the transformation of land capitalization. Land development right is the core carrier of the game, while economic supervision power and grassroots governance power lead the high-quality development of collective economy. This paper expands the research depth and scenarios of relevant theories and provides local experience for collective economy reform.