This paper examines the transformation of urban space in the peri-urban areas of Latin American mega-cities, further exacerbating the multi-jurisdictional political divisions that cover a single urban entity. This is against the backcloth of a sharp decline in metropolitan growth rates, absolute population loss in the city center, and an alleged “polarization reversal” of national urban patterns. It argues that previous approaches have failed to recognize that globally and nationally-derived economic development processes are often vested in these meta-urban peripheries. Using Mexico City as an example, the authors propose a new generic methodology that will allow for a broader definition and analysis of mega-city and large metropolitan development. Data are presented within this new framework that help to unpack the demographic, economic and land-use changes that are taking place in Mexico City’s broader urban area. Much of the contemporary vibrancy and dynamics of Mexico City’s metropolitan development are occurring in “hot-spots” in the extended periphery, which, to date, have rarely been considered an integral part of the mega-city. Yet these areas are also some of the principal loci of contemporary globalization processes.