The regional system of villages and towns is an important part of national territorial development. The construction of villages and towns is of great significance for coordinated urban and rural development and adjusting regional human-land relationship. The construction of villages and towns mainly involves housing, industry, infrastructure, and ecological environment, which not only is the basis of production and livelihoods of rural communities but also reflects the development level of villages and towns and the quality of life of their residents. This article first reviewed the main types of village and town construction in Western Europe (Germany and the United Kingdom) and East Asia (Japan and South Korea) and the functional evolution of villages and towns after World War II. It then summarized the development of government policies, plans, and regulations for rural governance in terms of regional systems, industrial development, and residents’ livelihood to coordinate rural development and local resources and environment. It also explored the interactive effects between resource and environmental conditions and rural development, that is, the impact of rural development on the change of resource and environmental quality, and the feedback of resource and environmental degradation on rural livelihoods and governments’ plans and practices. Based on this literature and policy review, we comparatively analyzed the stages of rural construction, major resource and environmental issues, and corresponding urban and rural development policies in the process of rapid urbanization in China. From the perspective of international comparison, the characteristics of China’s village and town construction were summarized with respect to regional rural systems and the types of rural development. Finally, this article proposed some policy implications on how to improve the coordinated relationship between rural construction and resources and environmental protection and utilization to promote sustainable regional rural development.