During the next two decades, the number of Chinese residents migrating from rural to urban areas will be roughly equivalent to the relocation of the entire current population of the United States. As China's own leaders recognize, without careful planning this urban transformation may bring disastrous consequences, including the exacerbation of the so-called "city diseases" of traffic congestion, air pollution, and water pollution. Grounded in experiences in both the United States and China, this December 2007 issue paper provides a comprehensive set of recommendations for balancing the needs of the economy, the environment, and society through the implementation of smart growth strategies that promote more efficient use of land, services, and resources.