Abstract: The relationship between urban and rural areas is the deep-seated issue of our social structure, which experiences policy guidance, technical guidance, investment and market leading in the reform process. The present problem in the relationship between urban and rural areas highlights the peasants land rights and labor rights protection in the process of urbanization, lack of public resources and basic public services in rural areas, and lack of human resources supporting the modern agricultural production and rural society governance, one-way flow of the rural production elements to the city, and the assimilation of the construction of the city and rural community. To solve these problems need to built the basis of the relationship between urban and rural areas on the socialist market economic system to adapt to the market environment, and to highlight the role of the market in resource allocation and flow of elements. Future reform points includes the implementation of rural financial reform as soon as possible, the realization three protection of land policy, exploration of effective forms of new collective economy development, protecting farmers' rights and strengthening the innovation of the rural social management.