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As China prepares to squeeze in 350 million new urban residents over the new decade, the government will pave 5 billion square meters of new roads and build hundreds of new cities and towns. And as available land space gets smaller and smaller--especially near the bigger metropolitan regions where people really want to live--China may also start building cities on water.

First up: A new floating city designed by AT Design Office and the Chinese construction firm CCCC, slated to begin development on a pilot scale next year.