Since the reform and opening up，private enterprises in Wenzhou，Zhejiang have developed rapidly and become an important driver of local economic development. However，the private enterprises are under mounting pressure to transform the traditional development model. For that reason，Wenzhou municipal Party committee and government proposed to create “two health” pilot zones in the new era to guide the transformation of development model. This article reviews the relevant policies for the “two health” pilot zones，examines the measures taken by the city to engage private enterprises in urban construction，and discusses the successful practices to ensure the active role of private economy in Wenzhou’s economy，society，environment and other fields. The article arrives at the conclusion that instead of dominating the urban development，the government has fully trusted，respected and supported private capital. By activating the market forces，the government enabled private enterprises to play an important role in Wenzhou’s sustainable development，and thus injecting more impetus into urban development.