The importance of the underground utility tunnel to the newtype urbanization, urban infrastructures and mode transformation of city development is presented. Then the stateoftheart of construction of underground utility tunnel in mainland China and developed countries are introduced and the key policies provided by the State Council for progress of underground utility tunnel construction are summarized. Some suggestions are given as follows: 1）Strengthening the toplevel design positively and orderly. 2）Improving relevant supporting policies, including construction requirements, policies of pay for use, increasing government investment and financing policy, etc. 3）Specific measures, i.e. learning the advanced abroad experiences and improving the regulation system, planning a general project for urban underground utility tunnel systemically and scientifically, establishing a overall management system for underground utility tunnel, giving consideration to civil air defence and promoting the PPP mode and innovating the investment and financing mechanisms, should be implemented.