"Dao Generating Institutions" was an innovative intellectual movement led by Dao-legalists who committed themselves to implementing the abstract philosophical term "Dao" into administrative, economic, legal and military systems during the crucial transformation from feudal society to trimmed society in pre-Qin China. It deeply influenced the governance idea and practical operations of later Chinese society, formed a different school of social thought and discourse from the sociology developed in the West. It therefore contributed a set of complete and inspiring system of thoughts and social ideals to the Chinese sociology. For sociological studies in China, in addition to paying attention to Confucianism, sociologists should also face directly the achievements and defects of Dao-legalism tradition, so as to understand the complexity of Chinese society more appropriately and create our own local theories yet with general explanatory capacity.