Abstract: The construction of montanic towns can better take the natural advantages of Yunnan, and Yunnan can better feature the characteristics of cities and towns. The strategic implementation of the protecting farmlands on the intermountain plain, constructing towns on the highland, in Yunnan montanic urbanization, makes full use of such geological and geomorphological characteristics as gentle slopes and hills, barren hills and slopes, river shoals and inferior lands to explore the methods of constructing towns on the highland in line with the realities of Yunnan, to build a new pattern of integrating urban and rural economic and social development, and to promote the montanic urbanization of being intensive, diverse and characteristic. This is significant to accelerate urbanization and to promote sound and rapid economic development in Yunnan Province.