Waste sorting in urban villages is a less developed while important issue in waste management and it is of great importance to environmental sustainability. China is now facing challenges of combating waste sorting while little attention has been paid to these challenges in urban villages. This article aims to add to this knowledge by examining how waste sorting has been implemented in urban villages via a case study of Shenzhen, China. A co-production theory perspective is adopted to explore how actors are engaged in the process of waste sorting and what are the results. The findings suggest coproduction approach is neither a top-down nor bottom-up approach. It is a much more complex process that involves intensive interactions between the government and residents. It concludes that the co-production approach to waste sorting exemplified by urban villages’ sustainable development has great significance for general environmental management and policy making in the long term.