Anthropogenic activity interacts with urban form and inner metabolic processes, ultimately impacting urban sustainability. China's cities have experienced many environmental issues and metabolic disturbances since the nation-wide market-oriented "reform and opening-up" policy was adopted in the 1980s. To analyze urban reform policy impacts and metabolism sustainability at a settlement scale, this study provides an integrated analysis to evaluate settlement metabolism and sustainability using a combination of emergy analysis and sustainability indicators based on scrutiny of two typical settlements (one pre-and one post-reform). The results reveal that housing reform policy stimulated better planning and construction, thereby improving built environmental quality, mixed functional land use, and residential livability. The pre-reform work-unit settlements are comparatively denser in per capita area but have less mixed land use. Housing reform has spatially changed the work-housing balance and increased commuting travel demand. However, short commuting distances in pre-reform settlements will not always decrease overall motor vehicle usage. Integrating non-commuting transport with local mixed land-use functional planning is a necessary foundation for sustainable urban design. Functional planning should provide convenient facilities and infrastructure, green space, and a suitable household density, and allow for short travel distances; these characteristics are all present in the post-reform settlement.