Abstract:Based on a mechanism logical model, a study was made of the core mechanism of China’s large scale regional development. Results show that the centralized allocation of resources in combination with “the decentralized market oriented development” plays an important role, and the logical relationship model can be constructed by two linear functions and a negative correlation curve function. The evolution is an inevitable transition from a centralized unified system to a decentralized system of small groups’ competition. And the prospects should be a combination of the centralized and the decentralized system in a particular environment instead of a decentralized system towards the absolute one. A further discussion is held on the urban rural development model and the urbanization mechanism, which provides guidelines for future regional development practice.