Abstract: Small towns are the connecting point of the two strategies of new urbanization and rural revitalization. They can not only provide a carrier for farmers' nearby and local urbanization, but also provide a platform for citizens to go to the countryside for pension or entrepreneurship. Under the policy background of urban-rural integrated development and two-way flow of factors, rethinking the positioning of small towns in urban rural development and promoting the construction of ‘new small town’ through system and mechanism innovation and comprehensive reform system can explore a path for urban and rural areas to achieve high-quality development, high-quality life and high-level governance.