The purpose of this paper is to determine to what extent urban growth can affect livelihoods and trade among rural households. To this end, a small town located in the South-West Province of Cameroon was selected and two series of surveys were conducted in 1995 and 2004 among 300 households and on the local food market. The main result is a fall in farm income and a rise in non-farm income at both household and market level. Horticulture remains popular as a high value crop among farmers. Despite the fall in farm income, production still meets demand either through higher quantities produced or new supply areas in the Province. Urban transition affects not only major towns but also most parts of the hinterlands with rural households. In this context, environmental degradation, declining soil fertility and saturation of potential farmland should also be incorporated in economic forecasting in order to ensure that the ongoing agricultural intensification is sustainable.