Based on the panel data of 31 provinces,municipalities in China from 2011 to 2016, this paper deals with the entropy method, and uses the generalized least square method to make the model heteroscedasticity and autocorrelation correction. On this basis, this paper carries out the research on the construction level of local public pension service system and draws the following conclusions: The higher the price of land transaction, the more people in the minimum guarantee range in the urban and rural areas, the higher the elderly dependency ratio, the more unfavorable to the construction of the local system of elderly care service. The more the central special appropriation and the more public welfare fund of the welfare lotteries, the more conducive to the construction of the elderly care service system on the part of the local government. According to the above conclusions, this paper puts forward some relevant suggestions on the construction of the local public elderly care service system, including the stability of land price, and the formulation of preferential land policy to carry out the prophase construction subsidy.