Sustainable municipal facilities are a crucial component of effective national, regional and city-level governance, with direct implications for population, economy, resources and ecology. This paper examines the historical evolution of urban development and municipal infrastructure across ancient and modern times, drawing on examples from both Chinese and foreign contexts. Through the lenses of urban resident perspectives, urban development dynamics and social development contradictions, this paper employs Maslow's theory of hierarchy of needs and the dynamic balance theory to elucidate the mutually reinforcing relationship between urbanization and the construction of municipal facilities. Ultimately, this paper argues that the development of sustainable municipal facilities is essential for ensuring the continued upward spiral of urbanization and municipal infrastructure construction.