The fifth viceroy of Peru，Francisco de Toledo，who was called “the great organizer，architect of the colonial system"，carried out a series of reforms in order to reorganize Peru's colonial system which had faced a crsis in the late 16th century. In this paper I deal with one of his reforms，the resettlement policy of the Indians in Peru. Toledo uprooted many Indians from their scattered small villages and concentrated them in larger Spanish-styled towns during the 1570s for the sake of promoting effective administration，Christianizing Indians and creating Indian labor pools for silver mines. I try to investigate Toledo's policy and enforcement of the resettlement of Indians and to consider its consequences upon the traditional Indian communities (ayllus).