The past 30 years of rapid economic growth in China also saw a drastic expansion in the scale of cities, which had a huge impact on historical settlements in the suburban area. The tension between the preservation and development of these settlements has heightened. Based on the case study of Dayuwan Village in Wuhan, the chapter presents challenges and opportunities facing suburban historical villages in their preservation and economic development. The chapter argues that the preservation of these villages, which depends on an increasing demand from urban areas, calls for a wider participation of local stakeholders in the local development process, such as the preservation of intangible heritages, in addition to the physical environment. The lesson drawn from the case study suggests that further efforts should be made on the utilization of historical heritage and the natural environment for cultural tourism in the attempt to integrate historical preservation with the improvement of villagers’ livelihood and daily lives.