With the socioeconomic development associated with urbanization, the urban-rural relationship has changed across the world. In China, due to the urban-rural dual structure, these changes turn out to be more complicated. Spatial restructuring are suggested as the main strategies and spatial supporting platforms for urban-rural development. However, the theory still lacks solid methodology and support from systematic empirical studies. This study seeks an adequate scientific methodology and discusses the difference of urban-rural transformation in plains and mountainous areas. A case in Shanghang County, China, demonstrates: 1) The compound ecological niche model can be a suitable approach in urban-rural restructuring, especially in mountainous areas. 2) The urban-rural development area with highly inappropriate, slightly appropriate, moderately appropriate, and highly appropriate areas are 1273.2 km 2 (44.69%); 906.1 km 2 (31.80%); 509.4 km 2 (17.88%); and 160.1 km 2 (5.62%), respectively. 3) The "deserting villages" in mountainous areas play positive synergistic roles in urbanization, in contrast to the "hollowing villages" common in plain areas. 4) The central town-village will become the most important settlement in mountainous areas. Therefore, we suggest more attention should be paid to environmental capacity in the construction of central town-villages. This study significantly extends the understanding of "hollowing village" theory and regional planning.