This study examines urbanization in Xichang city administration (XCA) and its implications on rural livelihoods. Time series data on population size and land use (1990–2010) of Xichang city administration were gathered from population censuses and revenue records. The data were analyzed to observe changes in population size and land use/cover during the recorded period. Along with this, a case study of seven villages that are highly influenced by urban expansion in close proximity to Xichang city was carried out. We surveyed 110 households of selected villages using purposive-random sampling method and framed a structured questionnaire on urbanization implications for them. Descriptive statistics, correlation and regression model was employed to analyze the data. From 1990 to 2010, the authors observed an enormous transformation in urban landscapes as the urban area has increased by 14.02km2 (111%) and about 20.65km2 (16 times) increase in public transit construction land. On the other hand, paddy fields and grasslands of the selected villages have decreased by 16.6km2 (4.9%) and 35.43km2 (8.4%), respectively. Along with urbanization, out-migration as well as medical and educational facilities has increased while agriculture and livestock activities have decreased. The study suggested that to lessen the impact of urbanization in rural areas, agricultural and its allied practices should be intensified so as to augment employment and reduce out-migration from the rural areas.
