In March 1979, the Central Government and Guangdong Provincial Government decided to rename Bao'an County Shenzhen City, to be governed under the administration of Huiyang Prefecture and Guangdong Province. In November that year, the city was promoted to prefecture level directly governed by the province. In August 1980, the Standing Committee of the National People’s Congress (NPC) approved the establishment of a Special Economic Zone in Shenzhen. In March 1981, Shenzhen gained the status to be a vice-provincial city. In November 1988, the State Council approved Shenzhen, along with some other major cities in the country, to be listed as an independent entity of the province in the State Development Plan. It was given the rights of a provincial-level economic administration. In February 1992, the Shenzhen Municipal People's Congress, its Standing Committee and the Shenzhen Municipal Government were given the right to draft local laws and set local regulations by the Standing Committee of the NPC.

By 2004, Shenzhen was completely urbanized, becoming a city without countryside.