As an important index to measure and evaluate resident’s quality of life,People’s Happiness Index gains new emphasis with the improvement of our social economy.The construction of the Indicator System of People’s Happiness Index makes the governments at all levels adhere consciously to develop the idea for people and let people share all the development results in the progress of the Scientific Outlook on development.The construction of a scientific index system which will reflect people’s living quality and subjective awareness of happiness must implement some fundamental rules:holonomic system rules;people’s livelihood priority rules;scientific and effective rules;practical and comparative rules;policy oriented rules.We can calculate the People’s Happiness Index in one area through evaluating index objectively and subjectively.