Instead of traditional approaches of Pluralism and Corporatism, this article tries to study the complicate interactions of state and society in the policy making process, from the viewpoint of Policy Network created in 1970. This article applies the concept of Policy Network to the case of construction of Mei-Nung Reservoir in order to understand its actual application to policy making. The profile of Policy Network Theory is given by looking into its emergence from Pluralism and Corporatism, its basis of theory, and meaning found in English literature. After descriptions of the background of building Mei-Nung Reservoir and the stance of each stakeholder, the Policy Network shows helpful in explaining the dispute and policy making. Finally some suggestions come out from this research