In this paper, we examine the urbanization history and policies of China and India with a special emphasis on the lower order cities. We consider the proposition that, as the developing countries continue to urbanize at a rapid pace, the lower order cities can play a potentially effective role in guiding future urbanization and in securing a balanced economic and spatial development. Through an examination of the urbanization records, policies, and performance of the lower order cities in these two countries we discuss the ‘top-down’ versus the ‘bottom-up’ approaches to urbanization strategy and national development. We conclude by discussing the nature of the differences between the urbanization policies of China and India and the transferability of the Chinese experience to other contexts.