Under China’s command economy, cities suffered from disinvestment in nonproductive sectors and saw their infrastructure and housing stocks deteriorate. The drastic turnaround during the reform period, consequently, is astounding. Aggressive infrastructure investment has enabled the rapid modernization of cities. As the Chinese economy moves ever closer to a market system, the role of stateowned enterprises and institutions in infrastructure development has diminished. Today, municipal authorities bear most of the responsibilities, using a widening range of financing mechanisms.