Abstract: Village and town industrial parks in regions with well-developed private economies in China have played a significant role in accelerating the process of industrialization. However, they have gradually revealed deepseated issues, including low-end industries, inefficient land use, complex property rights, and inadequate public facilities, which have hindered the high-quality development of these regions. This article takes Hangzhou Xiaoshan Airport Economic Zone in Zhejiang Province as an example. Based on an analysis of the development process and dynamic mechanisms of village and town industrial parks in Zhejiang Province, it systematically examines the practical challenges faced by this area in terms of industrial synergy, spatial structure, and property rights governance, and proposes that enhancing the supply of public goods should be a core focus. Through the establishment of a hierarchical and classified supporting facilities system, the construction of mixed-function communities, the innovation of floor area ratio incentive mechanisms, and the promotion of collaborative governance among multiple entities, a shift from a production-oriented to a human-oriented approach can be realized, providing a model for renewal, transformation, and governance that can serve as a reference for similar regions.