Xiamcn is an important coastal harbour and tourist city.Since the establishment of the spccial economic zone in 1980, great development in economy and urban construction have taken place.The built-up area has expanded to 38km² and the population has increased to 362 000 in 1986.But the figures will rocket to 1510.7km² and 1.04 million if the whole urban area (including Tongan county) is taken into consideration.The urban spatial structure will be, as Prof.Wu Liangyong suggests, one center and six Satellite towns around.The integratcd development is most important to Xiamen’s future.The stratigic position of Xiamcn can be analysed in four aspccts:favoriate geographic location, high level of economic opening to the outside, close relatio- nship with Xiamen-Zhangzhou-quanzhou economic area, and the harbour with favorite coast.Advantagious and disadvantagious factors should be carefully studied in the process of defining the comprehensive developing strategy.The paper suggests that the integrated development could he divided into three levels.Xiamen special economic zone should play the role of central city in the south Fujian Province.According to our research, the population of Xiamen will increase to 550000-600000 by 2000 (in built-up area), and the urban area will expand to 45-55km² by 2000, including suburb satellite industrial towns.As the relations of urban arrangements with regional economy, especially those in the following respects,are so complicate with each other, they should be dealt with carefully:1.To handle carefully the relation between urban and regional economic development of Xiamen.2.A set of natural, geographical, social, economic, political and administrative factors have commonly influenced the pattern and strength of urbanregional relationship.3.To deal better with the urban nature and scale and function of the development of each city or town in its regional system.