Small and medium-sized cities have played important roles in China's new urbanization strategies. Small and medium-sized cities can not only help large cities avert over-concentration of population，but also avoid excessively decentralized rural industrialization in small towns. To develop small and medium-sized cities，characteristic industries and vocational education are required so that people can get employed in the cities and become residents easily. City infrastructure and public services are necessary for urban residents. Public-Private Partnership (PPP) may solve the problems of fund shortage that the local government is facing during the construction. Besides，supply system of accommodations should be modernized to help the rural-urban migration's dream of being settled down come true.