Private higher education was probably the fastest-growing sector of postsecondary education worldwide at the turn of the twenty-first century. China is no exception. With the recent expansion and differentiation of higher education, private higher education, in conjunction with public higher education, has become a main force for enhancing the supply of higher education. This paper explores the features of the privately run educational sector's regional distribution and the mechanism that forms the privately run educational sector in China. Its major findings are the following: The mechanism of private higher education, as compared with that of public higher education, is more market oriented, versatile, and geared to socioeconomic requirements, and the growth patterns of private higher education vary according to regions; a "market resources dependent" growth pattern has emerged in economically developed regions, such as Zhejiang province; an "education resources-dependent" pattern has been identified in regions where public higher education is relatively well developed, such as Hubei province; and a "policy-driven" pattern in which government actions replace the market is seen in regions where the economy and public higher education are underdeveloped. (Contains 2 tables, 2 figures and 5 notes.)