Today, India still remains a rural agricultural country although the share of urban population has also increased but these figures do not tell the whole story. There are evidences that urban growth is dispersed and urban sprawl promotes the spread of urban land use into the rural-urban fringe. Here the attempt is to investigate the land transformation and the driving forces which were influencing the land transformation. The present study was done on peri urban interface of Aligarh city, a relatively small city, but as other north Indian cities, it is also expanding rapidly. Moreover, it too is surrounded by a populous rural area with productive and rich agricultural hinterland. Such conditions give rise to many conflicts and mutually beneficial complementarities in the rural and urban spheres. The result shows that the demand for land is high which results in informal urban development fulfilling the requirements of many of the city residents. Every piece of land is a tradable commodity, and the pursuit of short-term profits is the predominant ethic. The actors in PUI are strong because it is characterized by intermixing of rural and urban activities and interests as well as the number of actors are greater than in any other area..