As the transition region of two kinds of completely different ecosystems, the urban fringe is one of the areas where land use/cover changes most fiercely. The situation of land use in urban fringe area has been paid more attention to by people day by day. Taking Wuxi City as an example, this paper utilized 3S technology to extract information of land use/cover condition in urban fringe. Considering both region structure model of fringe area as the theoretical foundation and building density as the standard, this study regarded the edge of the built-up area of the city as the border distinguishing area with the city and fringe. Meanwhile, the administrative border of the village and towns which are connected to the built-up area of the city is considered as the exterior border of urban fringe. The border is amended by quantificational index. For extracting the border information of city fringe area, four time phases’ TM data (1984, 1991, 1998 and 2001) of Wuxi was utilized and the semi-automatic extraction models are adopted. The information of land use/cover change condition is drawn through computer-aided interpretation. Then, land use structure and its change of urban fringe in Wuxi were analysed on the basis of the extracted information. As a whole, its characteristic is that cultivated area is reduced fast; the proportion of land for construction increases year by year; the construction of industrial park becomes a common practice; the efficiency of land use is low; fragmentary land use distributed on this area sporadically; the fragmentation of land use/cover type is obvious; the land for construction of the city has expanded orderly; and a homogeneous expansion mode of city-construction-land has formed. In the end, this paper brought forward land use proposisions for urban fringe areas in Wuxi: （1）To strengthen the basic road network construction of fringe area and to promote the coordinated development in urban and rural areas. The intensive river system of fringe area in Wuxi has formed the crooked road network, causing across-river traffic inconvenient. The city lacks a rational and orderly urban road system which can adapt to the modern traffic. With the considerable growth of the motor vehicle traffic, the pressure that road network faces is greater and greater. The construction of the basic road network in urban fringe needs to be strengthened. （2）To strengthen land use planing and controling, especially to strengthen the guarantee for the green ecological space. The kinds of land which have been defined in the land use planning definitely, such as agriculture protection land, water source land, tourism and leisure land, and natural ecology protection land, need to be protected severely through laws and regulations to keep that the cultivated land reduces within limits. （3）To consummate the construction of land market of urban fringe. To accelerate the reform pace of the land use system. To set up a uniform, perfect, open, fair, standard, and orderly land market and land exchange system which meets the needs of urbanization. To change the state of the out-of-order manamegent and uneconomic land use.