As urbanization process goes deeper, the life style of rural population and economic and social formation has changed fundamentally. On the contrary, the existing rural economic and management system, village committee system, and rural household rural register could no longer fit into the new trends. Therefore, Tianjin has launched the integration of urban and rural areas, changing agricultural into non-agricultural residency, rural village into residential community, and collective economy into shareholding economy.

In the process, 43 villages in Tianjin have started this round of urbanization, and in 2012 the program expanded into 100 villages. This program leveled off living standards between rural and urban residents and improved community management and service system, giving farmers the opportunity to become shareholders.

Those who have turned their household registration into non-agricultural ones could enjoy preferential policies for both the rural and urban residents. Also, as the rural collective economy is replaced by shareholding, the collective land is now owned by each villager as shareholders.

Since the second half of 2005, Tianjin has launched the program to turn rural houses into modern residence, without cutting arable land. By May 2012, the city had constructed residence area of 32 million sq m, providing home to 400,000 rural residents, reaching an 82 percent urbanization rate. The program is highly appreciated by the locals.

In 2015, the area of completed demonstration towns in Tianjin was 5,020,000 square meters, and all together 700,000 people had moved to small towns; four more pilot projects (including the second phase of Jinzhong Project) were launched; the second batch of “three transformations and one integration” pilot projects were basically completed, and nearly 300,000 farmers became new citizens with salary, shares, rent and social security.