Since the 1990s, a gradual deregulation reform has been implemented in the natural monopoly industry. In this reform, a striking economic success has been achieved；However, a lot of problems still remain unsolved. In order to understand the logic of the reform and explore the future direction of research, in this paper, the literature on deregulation in the industry is reviewed. The paper analyzes the reform scheme of the deregulation reform in our country based upon the theoretical foundation and international experiences. Some conclusions are made and the prospect of research is put forward.