Regulation refers to governmental restrictions over enterprise in order to protect public interest. Research on governmental regulation in China primarily focuses on public utility, and inadequate attention has been paid to regulating college tuition. Currently, although the educational administrative agencies have successfully kept college tuition at the level of the year 2000, the governmental regulation on tuition has not achieved the effects expected because it has not been able to lower college tuition to the level that the public is willing to accept, and it has not established any internal scientific management system in colleges. The ultimate goal of college regulation should be establishing a healthy order among various social groups. After tuition is capped, the priority for constructing a scientific college management system is to define the goals for governmental regulation on college tuition. A feasible option for now is to replace cost analysis with intervention institutions and to improve the situation of asymmetric information.