Although internal migration is one of the most frequently discussed aspects of China’s twenty-first century urbanization, much of the research in this area emphasizes megacities. This paper, however, focuses on Wenzhou, a Chinese city that served as a national model for the introduction of small-scale private enterprise in the 1990s. Through a survey of migrants living in the subdistrict of Shuangyu, a settlement dominated by manufacturing workers, this article argues that socio-spatial segregation research should pay more holistic attention to migrants’ use of urban space, beyond simply place of residence. Focusing on how migrants use space in several aspects of their everyday lives, this article contends that Shuangyu is socially and spatially segregated from other parts of the city. Rather than neatly incorporated into the rest of the city, migrant settlement in Wenzhou is both marginalized and independent. We thus theorize Shuangyu’s place in Wenzhou’s new socio-spatial structure as a “city within the city.”