Urban basic education schools have long been a decisive factor in residential relocation, housing choice, and neighborhood differentiation among Chinese families. Since the 1990s, major Chinese cities have established School Districts (SDs) policies to allocate compulsory education opportunities according to residential location, thereby linking schooling rights, housing markets, and urban spatial governance. Although SDs were initially introduced to stabilize enrollment order, promote nearby schooling, and respond to the rising demand for basic education during rapid urbanization, they have increasingly become a key mechanism through which scarce high-quality education resources are spatially distributed and socially contested. In the context of inter-school competition, rising housing prices, demographic restructuring, and urban regeneration, SDs have generated socio-spatial consequences beyond the education system itself. They shape household mobility strategies, reinforce or mitigate residential segregation, affect housing capitalization, and influence urban life circles, community identity, and everyday access to public services. Therefore, SDs provide an important entry point for understanding how education resources participate in the production of urban spatial heterogeneity in contemporary China. This study systematically reviews the origin, evolution, institutional logic, and current research status of urban SDs in China. Drawing on literature from urban planning, geography, education policy, sociology, public administration, and real estate studies, it reconstructs the historical trajectory through which SDs shifted from an administrative enrollment arrangement to a spatial institution with significant distributive effects. The review first clarifies the policy background of SDs, including compulsory education, nearby admission, enrollment-boundary adjustment, and the relationship between school allocation and residential qualification. It then examines how SDs have been conceptualized in existing research, particularly as school catchment areas, education service zones, institutional boundaries, housing market signals, and socio-spatial units embedded in urban governance. On this basis, the study synthesizes major analytical themes, including education equity, access to high-quality schools, school-district housing premiums, residential sorting, class reproduction, neighborhood differentiation, and coordination between public service provision and spatial planning. Existing studies have made important contributions to revealing the economic and social impacts of SDs. They demonstrate that high-quality schools are capitalized into housing prices, giving rise to school-district housing markets and reinforcing the unequal capacity of families to access educational opportunities through residential choice. Other studies emphasize the role of policy design, enrollment rules, school reputation, parental expectations, and informal information networks in shaping the perceived value of SDs. Research also shows that SDs are not passive containers of school resources; rather, they reorganize urban space by influencing household location decisions, community composition, and the spatial distribution of educational advantage. Nevertheless, the literature remains fragmented in concepts, scales, methods, and theoretical explanations. Many studies focus either on housing price premiums or on education policy evaluation, while the generative mechanisms of SDs as socio-spatialinstitutions remain insufficiently examined. In particular, limited attention has been paid to how school quality, historical accumulation, policy adjustment, parental mobility, housing market dynamics, and neighborhood transformation jointly produce differentiated SDs. This review identifies three major gaps. Firstly, the formation mechanism of SDs should be examined beyond formal enrollment boundaries. SDs are generated through the interaction of school location, education resource allocation, administrative regulation, market valuation, and family strategies. Their social meanings and spatial effects are reconstructed through policy change, reputation circulation, housing transactions, and demographic mobility. Secondly, the socio-spatial effects of SDs should be analyzed across multiple scales. At the micro scale, SDs influence household relocation, housing purchase, commuting routines, and children’s daily activity spaces. At the neighborhood scale, they reshape community stratification, housing turnover, public service demand, and local social networks. At the urban scale, they contribute to uneven development, education-resource concentration, and spatial polarization. Thirdly, the relationship between SDs and urban regeneration remains underexplored. In many Chinese cities, older central neighborhoods may possess prestigious schools but constrained physical environments, whereas newly developed areas may have better built environments but weaker school reputations. These mismatches suggest that SDs should be understood through the changing relationship between educational resources, built environments, and redevelopment trajectories.Based on these findings, this study proposes future research directions. Future studies should move from static descriptions of school districts toward mechanism-oriented analysis of how education resources shape urban spatial differentiation. They should integrate quantitative spatial analysis, longitudinal housing transaction data, school quality indicators, demographic data, and qualitative evidence on parental perception and policy implementation. Greater attention should be paid to the distinction between actual school quality, socially perceived reputation, and spatially accessible educational opportunity, because these dimensions may diverge and produce different forms of socio-spatial mismatch. Moreover, SDs research should be connected with life-circle planning and public service evaluation. By incorporating school accessibility, daily mobility, neighborhood facilities, and residential affordability into an integrated framework, planners can better assess whether basic education resources are equitably embedded in everyday urban life. Overall, this study argues that SDs are not merely technical enrollment zones, but socio-spatial institutions that mediate the relationship between education, housing, family mobility, and urban transformation. It provides a conceptual foundation for rethinking the role of basic education schools in urban spatial production and offers planning implications for building more equitable, accessible, and integrated public service systems in contemporary Chinese cities.