The optimization of development space, functional layout and land use structure is of great significance to the sound development of township industrial economy. Jinxiang Town in Cangnan County has a large number of industries and various types of industries, which is a typical case of industrial towns in southern Zhejiang. By analyzing the layout characteristics and constraints of the industrial development space of Jinxiang Town in Cangnan County, this paper considers the overall planning and spatial land use of the whole town, and puts forward the optimization strategies of planning guidance, space striving and policy supporting, so as to realize the reconstruction of the development space of township industry, and provide reference for the development of township industry in southern Zhejiang.