Abstract: The study is conducted in the urban fringe of Makassar City by analyzing spatial utilization shift, spatial articulation, social formation and co-existence of mode of production in the dynamics of development at the urban fringe by the use of quantitative and qualitative approaches (mixed method). Data is acquired from some sources and informants (immigrant and native) living at the urban fringe of Makassar City. Spatial utilization shift implies the occurrence of spatial articulation which does not interrelated in the framework of domination over tenure of reproduction of space which affects changes in social formation and co-existence between capitalism and non-capitalism mode of production. Co-existence of two kinds of mode of production indicates differences in production system either in production procedures, force of production, utilized means of production and labor skill and also in relation of among working class at the urban fringe of Makassar City.