Land readjustment has long been employed in Taiwan to supply land for urban development. It is widely believed that sites after readjustment are of a better size and are equipped with satisfactory public facilities, and so sites in a readjustment area are prime areas for redevelopment. However, this paper, based on a case study, argues that the current process of land readjustment in Taiwan does not guarantee the return of readjusted sites that meet the needs of individual development projects. Land readjustment in its current form might have improved the overall condition of land in a readjustment area. Nevertheless, at the level of individual sites, the effectiveness of land readjustment in promoting land development is questionable.