Existing foundation and development opportunities of regional circular economy are elaborated. The first is gradual establishment and perfection of relevant laws and regulations and policy systems. The second is establishment of technical standard for circular economy and implementation of development model. The third is scientific and technical innovation prodding technical support for circular economy. The fourth is opportunity of green development in international environmental and economic situations. And the fifth is leap-style development supported by solid foundation. Then, Anhui Province is taken as an example to analyze challenges faced by circular economy. The challenges include increase of resource restriction and environment pressure; supporting policy and legal system to be further perfected and implemented; circular economic indicators not included into political achievement assessment; and technical supporting foundation of circular economy still to be strengthened. Finally, path selection is put forward for development of circular economy in Anhui Province, make definite development direction of circular economy with tasks and targets; take major fields as carriers of development of circular economy; take major fields as carriers of development of circular economy; and take institutional construction as guarantee of circular economic development.