In this paper, the historical reasons of formation of the village inside the city are analyzed. It is indicated that such situation for the villages inside the city are the result of joint action of both the villagers and the government. The foundation of villages inside the city laid on the simple compensation for farmers in confiscating the rural land and lack of intelligence aids. In this paper, the ideas and measures for their reconstruction are put forward based on consideration of the reasons of their formation and difficulties in the reconstruction.