In the process of urbanization in China，it’s not sustainable for local governments to rely on “land finance” or “land fiscal” to finance the urbanization. In addition to speeding up the reform of fiscal and tax system，this paper suggests the model of urbanization investment and financing should shift from the administrative control system to a rule-based integrated control system，namely，the central government sets ratios like the maximum debt ratio to control the local governments’ debt levels，and uses other means as a supplement，such as encouraging innovative financing patterns，deepening the role of development financing organizations or bond banks.