During the process of China's urbanization, there exist high-income regular sector and low-income irregular sector simultaneously. Being restricted by human capital, social capital and the institution of residence, most of the peasants who come into the city can not be accepted by regular sector and have to come into isregular sector. Therefore the urbanization becomes a flow from village to the urban irregular sector, and a monotonic increase in the relative population of irregular sector, which would tend to enlarge the within-urban inequality under specific conditions. The hypothesis has been supported by the empirical test.