An analysis of three versions of “the Lady White Snake” tale from different periods is provided in this article in order to demonstrate how the metaphorical oedipal conflict relationship in the story developed and how the level of defence in group unconsciousness evolved as a result. It intends to demonstrate that in the particular cultural context of China, the dilemma of sexuality between mother and son that is metaphorically portrayed in the text, even at the level of fantasy, cannot either be achieved nor sublimated, but rather can only be managed through the defence mechanism of repression.