Relocation project is an important part of the national strategy of targeted poverty alleviation. It plays a key role in solving the problem of poverty in areas “which cannot provide subsistence to foster their residents”. Based on the investigation of the relocation process for poverty alleviation of G County in Central Guizhou Province, this paper analyzes how relocation for poverty alleviation has transformed from the original multi-points layout and scattered resettlement to a monotonous mode of concentration in urban areas. The study has found that because of the double constraints of both capital and land as well as the domination of the urban and rural dualism, the local government regards urbanization as a major means to stimulating economic growth and promoting the prosperity of the impoverished population. Therefore, the mode of concentrated relocation in urban areas for poverty alleviation demonstrates clear-cut policy logic. However, this mode of relocation in cities only emphasizing the intensive effect on the economic level, has shown great limitations in practice because it has not fully considered the local development conditions and the actual situation of the impoverished people. In view of this, this paper proposes to further improve and optimize the follow-up relocation projects for poverty alleviation from three aspects, namely, transcending economic logic, reserving space for livelihood transformation of the impoverished people and accelerating their employment in relocated areas.