This paper systematically traces the evolution of China’s Lvli system from the Zhou to the Song Dynasty, revealing the system’s reference value for ancient social governance and modern urban planning. Through literature analysis and historical comparative methods, the study finds that: (1) the Lvli system underwent a transition from clan-based settlements to administrative units, forming a complete system during the Qin and Han Dynasties; (2) the Tang Dynasty’s Fangshi System, the pinnacle of the Lvli system’s development, achieved an organic integration of spatial control and social governance; (3) the emergence of the Song Dynasty’s Jiefang System reflected the breakthrough of commercial economy against closed residential models. This research provides a historical reference for contemporary community governance and neighborhood space design, particularly offering insights into promoting community autonomy and enhancing the effectiveness of spatial control.