Annotation:::: The paper provides an economic study of the resettlement of mountain people in southern Shanxi, northwestern China, and aims to explore solutions for the problems arising from the large-scale resettlement of mountain people. The paper uses the method of documental study and draws on economic perspectives to discuss and analyse the characteristics and difficulties of such a large-scale migration project.The authors conclude that the project of resettling local residents in southern Shanxi involves resettlement of various types of migrants, may take a long period of time, and requires a large amount of funds. Large investment in resettlement areas can help solve some major problems, such as job provision, and the link between land demand and land supply, among others.