Peri-urban transition zone lakes are experiencing with the pressures of improving the urban living environment and meeting the demands of economic development, undertaking more diverse and more important ecological service function. However, the shortage of enough knowledge of service value of ecosystem of Peri-urban transition zone lakes lead the near zone to be blind development, irrational utilization and severely damage of the ecological environment. Correct evaluation the service value of ecosystem is becoming an urgent issue currently. The strategies of development and utilization based on the service value of ecosystem could provide a basis for lake sustainable development. The monetization methods, including market value method, shadow engineering method, travel cost method, contingent valuation method, and so on, were used in this paper to evaluate the service value of ecosystem of Yandong lake in Wuhan. The results shown that the total asset value of the Yandong Lake was 357.99 million yuan/a in 2008, which equal to 40.50 percent of the gross fiscal revenue of Hongshan District in Wuhan. It is obvious that there is considerable service value of ecosystem in Yandong Lake. It has also let us aware that we must pay attention to protect the lake district ecological environment, make a corresponding development plan suitable to lake ecosystem characteristics, in order to achieve sustainable regional development. The service value of ecosystem of Yandong Lake is composed of direct use value, indirect use value and non-use value. The amount of value of the three components was 26.29 million yuan/a, 29.04 million yuan/a, 302.66 million yuan/a, respectively, the shown order was non-use value > indirect use value > direct use value. The non-use value was about 5.5 times the use value. It has shown that the non-use value of Peri-urban transition zone lake is more important than its use value, and that people are willing to funding for the non-use value which maintains the natural beauty better- Followed by indirect use value, it has shown that Yandong Lake had good function of maintenance ecological environment, and has the potentiality in promoting the function. Direct use value was relatively low, which show the direct service to humanity of Peri-urban transition zone lakes are not the most important function. The existence value was the highest one of the 12 evaluation indicators, and the order of use values was water conservation value > transpiration endothermic value > flood control value > leisure tourism value > research and education value > substance production value > biological diversity maintenance value > carbon fixation and oxygen release value > water purification value, while the order of non-use values was existence value > heritage value > option value. Thus, we can make conclusions, it is important to protect the integrality of lake water area, maintain the functions of water conservation, sustain transpiration endothermic and flood control, weaken substance production function, moderately develop leisure tourism function, promote carbon fixation and oxygen release,and enhance water purification ability in the course of development and utilization of Peri-urban transition zone lakes.