Urban rail transit construction has positive externalities, with a significant impact on the value of the land along, and for its advancement of time, the real estate prices will actually raise before the rail transit construction. In this paper, the hedonic price model is applied to establish an econometric model of land values-added city through urban rail transit construction, and the empirical analysis is carried out considering the rail transit line 1 in Nanchang, China. The empirical results show that by April 2014, the overall values-added of the real estate along the Nanchang rail transit line 1 have reached about 1.85 billion RMB. Therefore, it is necessary to establish a kind of land value increment benefit distribution mechanism, by concrete means such as "real estate developers participating, collecting special property value added tax, the land integration development" and so on, which can return part of the land value increment income to the urban rail transit construction.
