Urban development has important implications for farmland preservation and natural resource management in local peri-urban communities. Social science research on recent changes in rural landscape of mega-cities tends to be limited to case studies in Latin-American nations. This study analyses the socioecomic dynamics of farming land use and the interactions between multiple cultural variables and the environment. Fieldwork was carried out during the 2002–2003 period in rural livelihoods of the five high mountain towns of south Mexico City. Data obtained from participatory survey and ethnographic techniques were integrated to assess changes in rural landscape and resource management and how urbanization, deforestation and market oriented agricultural production result in different livelihoods within a similar urban fringe context. The dynamic of mixture of urban and rural landscapes is based on farm productivity and social capital factors. The study concludes that policy support for regional agricultural production systems through enhancing ecosystems services, environmental protection and economic development is needed for sustainable development of local communities.