Although the benefit of agglomeration has been hugely emphasized by the central government which led to the majority of amenities and services are only in cities and the household-registration system (Hukou) equipped the city with more advantages, the exclusively focus on “megacity-making” eventually leads tothe mega-city problems, environmental deterioration and the urban-rural disparity. In the 30 years since the reform and opening up, the rapid urbanization has brought many urban problems to China, such as the widening gap between urban and rural areas and the worsening environment.Urbanization is still in progress in China, with another 300 million people expected to become urban in the next decade. Based on the studies of the Kunming peri-urban area, this project will analyze the competitive advantages and disadvantages of peri-urban agriculture development in Kunming, and reveals that the rural industry transformation is the development trend of peri-urban village reinvention from the perspective of realizaing the diversified agricultural values - economy, ecology and society values. This project will also discusse the spatial planning strategy of peri-urban villages under the guidance of industry agglomeration and knowledge economy, forms the benign growth boundary between urban and rural areas by constructing the multi-functional industrial-space system, and finally realizes the urban-rural coordinating development with different characteristics respectively.