To achieve sustainable rural development, it is necessary to simultaneously protect ecologically important land and efficiently use existing agricultural land. Land use functions (LUFs) are widely used to assess regional sustainable development. Guyuan is located in a typical hilly and gully region of western China, with ecologically fragile land. Rural land transfer (RLT) has been advocated to prevent abandonment of agricultural land and promote rational, effective utilization of the land.

Land degradation is becoming a serious environmental issue threatening fertile agricultural soils and other natural resources. There are many driving forces behind land degradation. The expansion of artificial surfaces due to various economic activities, such as housing, industry, and transport infrastructure, known as soil sealing, constitutes one of the most intensive forms of land degradation in urban regions. Measures to halt and reverse land degradation require both strong land-use management policies, as well as effective spatial planning mechanisms.

This article examines the role of legal actors in mediating urban land conflicts involving informal settlements and the social and environmental functions of private property. This problem reveals the challenges of conciliating two constitutional rights—the right to adequate housing and the right to a healthy environment. Methods include an analysis of the urban policy and legal framework regulating environmental protection, housing provision, property rights, and land use law.