Abstract: With the acceleration of urbanization, the transformation of in-situ urbanization mode is worthy of attention. Through interviews and field research, the development process of in-situ urbanization areas, which include four towns in the middle of Chenghai district, Shantou city, is sorted out. The research finds that the development process of in-situ urbanization is divided into 3 stages, which are non-agricultural start-up, urbanization development led by rural industry and ‘re-urbanization’ development. The development mode can be summarized as starting from ‘three idle’, leading by industry and strengthening of government regulation. In the process of transformation of in-situ urbanization, not only the urban space is shaped, but also the new governance relationship is generated. From the perspective of governance, this paper discusses the phenomenon of in-situ urbanization transformation and draws 3 conclusions:(1) The transformation of in-situ urbanization areas has entered a new stage of ‘re-urbanization’; (2) Different participants play different roles in different development stages of in-situ urbanization, and bring about changes in governance mode; (3) Only by strengthening spatial control and optimizing physical environment can in-situ urbanization areas be transformed and developed.