Land-use/cover change plays a pivotal role in global environmental change and sustainable development in local scale. This paper takes up Yangtze delta in China for a case study to analyze the relationship between urbanization and land-use change. The land-use changes have been detected based on the post-classification comparison technique through the procedure of geo-reference, image normalization, maximum likelihood classification, using the LANDSAT TM data for the years of 1984, 1988 and 1994. The main characteristic of the land-use change in the period of 1984 to 1994 is the quick expansion of urban areas especially the significant increase of small town.This can be seen as the result of development of town village enterprises (TVEs).