Abstract: The deregulation of incremental distribution network investment business is the focus and difficulty of the new round of electric power system reform, which has attracted attentions of all sectors of society. with the country’s 106 pilots identified, the deregulation of incremental distribution network investment business proceeds from the top-level design to the implementation phase. In order to promote the smooth implementation of the pilot reforms, several key issues for deregulation of incremental distribution network investment business are studied in depth in this paper based on a deep interpretation of related policies, including deregulation mode, pricing mechanism, the way that the power generation enterprises to participate in the pilot reforms, and the supporting mechanism. Some relevant suggestions are proposed. The research results can provide a reference for decision-making in formulating schemes and specifications of the incremental distribution network investment pilot reforms.