Abstract: The rural poverty-region agricultural economic development in Gansu Province brought about the rapid development of micro-finance. mutual funds cooperative has especially seen quick expansion. But for serious lagging behind of related regulations, there has been restricted long-term development. Based on the status quo of underdeveloped areas in Gansu Province, this paper focuses on the cooperatives functions for poverty alleviation, regulatory effectiveness, and existing problems and so on. It is hoped that through the perfect legal policy, risk prevention mechanism, strengthening supervision and continuous innovation, the service level of funds mutual-aid cooperatives can be boosted.