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ABSTRACT This paper introduces a new way of decomposing regional inequality. It divides the Beijing-Tianjin-Hebei metropolitan region into three sets of districts in terms of the urban-rural resource flows: urban, peri-urban, and peripheral areas. Unlike the administrative divisions, these three sets of districts show how resource flows and agglomerates at the regional level. The paper decomposes regional inequality according to the three sets of districts. The paper's findings show that regional inequality decreased between 1990 and 1994, after which it remained steady. The study, for the first time, brings peri-urban areas into a regional decomposition analysis, and contributes to the understanding of urban-rural resource flows and inequality changes at the regional level. [ABSTRACT FROM AUTHOR]