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Due to the planning, producing, operating and administrating procedure were not been tightly connected, a great amount waste of investment will be caused in traditional power system's development and construction. So, the development of power system needs to be considered comprehensively in the perspective of the improving of power supply reliability and the economical of power system's construction. This paper proposed a two-stage distribution system planning method based on the demand above. This method broke through the limitations of the traditional planning which can only consider the simple reliability demand such as the N-1 principle, and specified it into every stage of the planning. Besides, it could comprehensively optimize the network structure, equipment condition, technology application and administration method to make the project more scientific and feasible, which will effectively improve the power supply reliability and the economical of power system's construction.