This paper, written for the Paulson Institute, describes the trend of China’s rapidly urbanizing population. It outlines the benefits of smart urbanization, including quality of life, community, access and mobility, prosperity, and reductions in pollution, noise, and global warming. It provides six ingredients for successful urbanization: permeable urban form, transit-centered transportation with walking and biking, effective building codes, municipal finance reform, better measures of urban sustainability, and a strengthened planning process.