Abstract: Based on the thinking about accelerating the leaping development, protecting the high quality farmlands, building livable cities and towns, and effectively solving the conflicts between farmlands protection and urban construction land expansion, Yunnan Province fully explores and practices the development path of protecting farmlands on the intermountain plain, constructing towns on the highland, and strategic achievements have been made. Because highland urbanization has its drawbacks, and there are all kinds of deviations from the New Deal in understanding and implementing, Yunnan highland urbanization will be faced with lots of conflicts and contradictions. Thus Yunnan highland urbanization should be in harmony with urban planning, with the land using, with the farmers into the city, with the industrial system, with the living environments, with the national culture.