Since the reform and opening-up, China’s economy has achieved remarkable development and so does the urbanization. However, there is an unavoidable contradiction between urban sprawl and the protection of arable land and the environment. By redefining the urban sprawl boundary, this paper is to provide a solution for the conflict above on the China’s urbanization context. The ideal boundary, moderate boundary and limit boundary are defined for urban sprawl in space. Taking Nanjing city as a case, the three urban sprawl boundaries are estimated in this paper based on the calculation of agricultural land resources value in Nanjing. The results show that 1) the integrated value of agricultural (cultivated) land resources in Nanjing is 1.55 × 10 CNY·hm , the economic value accounts for only 8.74% of the integrated value, while 91.26% of the integrated value has not revealed itself due to the existing institutional arrangements, policy distortions, and imperfect land market; 2) it is difficult to define the ideal and moderate boundaries due to the relatively low price of North Nanjing. In South Nanjing the land price is expensive and the ideal, moderate and limit boundaries are expanded to Jiangning, Qixia, and Yuhuatai; 3) the city scale of South Nanjing should be limited within 5.82 × 10 hm , which is roughly the same as the designated size of 5.81 × 10 hm in the urban planning. It is suggested that the rational scope of urban expansion should be controlled within the moderate boundary.