The rural area in the central plain area in Henan province, China has problems such as inefficient land use and unplanned village setup. This study was performed in Lilin town to develop a pilot redevelopment system. Conservation of local characteristics and protection of the farmers’ interest are the high priority in the new rural development plan which aims to create a harmonious relationship among the land, water, road, forest, and the residence. By strategically redistributing local resources, the plan helped to resolve the fund shortage problem, and significantly promoted development of both urban and suburban areas.