Abstract: China's historic and cultural city system emerged during national construction, took shape during reform and opening-up, and was adjusted through rapid urbanization. After more than forty years of practice, it has entered a phase centered on living conservation, use, and cultural inheritance. This paper traces the conceptual shift from mechanistic protection through boundary demarcation and material retention to organic conservation pursuing integrity, soundness, and authenticity. In response to current requirements, it further proposes a people-centered orientation and a system of civilizational identity, clarifying the core meaning of urban-rural heritage conservation and inheritance in the new era.