As one of the coastal open cities in China, Wenzhou is situated in the south-easten part of Zhejiang Province. Consisting of nine counties and one district, Wenzhou municipality has a population of 6.3 million (1985), but the city itself has only a population of 300 000.Economy is the leading factor for urban develoment. Since 1978, when the economy reformwas launched in rural area the ever-increasing commodity production and family industry in Wenzhou have played an important role in speeding up urbanization. In recent years, about 620 000 of farmers have left rural area and moved to small towns for being engaged in family industry and tertiary, so that the urban population has significantly increased, accounting for 23% of the total population. As result of the investment by many rich farmers, small towns in Wenzhou have developed rapidly. From 1977 to 1985, the number of towns in Wenzhou increased more than twice. The new town Longang (with a population of 24 000) was set up by farmers any other support. Besides, the commodity production has brought about much progress in specializaed production. It is in favour of the reasonable regional division of labour within the urban system.The basic guideline of urban system planning in Wenzhou is to bring central city into full play, to improve the quality of small towns continually, to develop an urban network with complete size structure and rational division of labour as well as coordinate distribution.1. To raise the size-class of the urban system in Wenzhou. The level of urbanization will be expected to reach 40% by 2000 years. More than fifty new towns will be constructed. As a central city, Wenzhou will develop from a middle city to a large one, with a predicted population of 650 000. Rui’an and Aojiang will grow from county towns into small cities with a population of 150 000 each.2. To organize a rational division system of cities and towns. According to their status and function in the region, cities and towns in wenzhou will be divided into five grades: central city-subcentral city-county town-local central tcwn-town. Then, each grade of cilies and towns will be further divided into 16 function types, for example, industrial towns, traffic towns and trade towns etc.3. To establish an urban network which links points, lines and surface together. To plan a 4-class developing axis in which all cities and towns will organized as an organic unit. Taking Wenzhou, Rui’an and Aojiang as cores, three urban-rural economic, cooperation areas will be set up.Wenzhou is the central city of the whole region. In order to bring it into full play in the south-eastern part of Zhejiang Province in the future, the most important measure will be to build railway and other infrastructure as well as promote light industry and tertiary industry.