As one of the fastest-growing economies in the world, China is experiencing the largest scale of urbanisation in human history. More and more land is required to support this massive urbanisation. However, rural land acquisition and compensation to the changes in farmers’ household registration (hukou) are complex issues in the process of urbanisation under the dual land tenure between city and rural areas in China. Furthermore, local government has been under increasing financial pressure after the tax sharing system was implemented in 1994. To raise funds and develop urban construction, various cities have undertaken different strategies of land development during their on-going urbanisation, which is also discussed in this study. Urbanisation is a process of expanding urban space with a view to develop the land efficiently. Therefore, the objective of this study is to introduce the dual land system in China, the evolution of farmers' collective land ownership, and the process of governmental land acquisition. Subsequently, we will examine the case of the case of Shanghai Pudong New Area, which develops land with an insufficient financial support and its corresponding solutions. Finally, the authors highlight problems in the process of land acquisition and land development.