Abstract: As an institutional reform, whether collective forest tenure reform would bring about the sustainable development of rural areas or not has become a concern of the whole society. The economic and social welfare in rural areas of Sanming City was measured by using the index of sustainable economic welfare ( ISEW). ISEW results indicate that, after the reform of collective forest tenure system, Sanming City's social and economic benefits in rural areas decreased at first and then increased, and the growth level of ISEW per capita is lower than that of GDP per capita. From the developing trend of ISEW, it can be concluded that the rural areas of Sanming City are in a state of sustainable development.