Abstract: The proposal of people's city reflects the new expression of China's governance in the urban dimension and the new generalization of the concept of urban governance. Urban village in the scenic area is a special phenomenon born in China's urban-rural dual system and the protection system of scenic spots. It is embedded in the urban space. Its spatial governance and development dilemma highlights the complexity and contradiction, and it is urgent to explore effective governance paths. The goal of village governance in the people's city is to reflect the value judgment of urban-rural relations with Chinese characteristics, promote the balanced distribution of power among various groups in the village, and establish a new urban-rural relationship that is inclusive, shared, fair, and just. The research puts forward: 1) The governance mechanism of people's urban space embodies the characteristics of the transformation from capital logic to people's logic, and the connotation is to promote the balanced distribution of development power, and finally realize the organic unity of attributes, functions, and organizations; 2) The governance dilemma of village in the scenic area includes three aspects: attribute ambiguity, function reconstruction, and organizational disorder; 3) Therefore, the realization path of spatial governance in village in the scenic area includes the innovation of governance rules, the optimization of ownership boundaries, and the construction of action mechanisms, so as to promote the formation of a ‘life community' of village in the scenic area. =