Originally called Lujia Bang, Lujia was part of Louyi during the Spring and Autumn and Warring States period (770-221 BC). Legend has it that the town center used to be a small river named Hetang Bang (literally a small river in Chinese), in which a kind of grass called Lujia Grass once grew. This is how the town got its name—a combination of the names of a river and a grass. According to Lu Xi Zhi, written during the reign of Emperor Qianlong of the Qing Dynasty, two grandsons of the Prime Minister of the Wu Kingdom, Lu Ji and Lu Yun, once lived here during the Three Kingdoms period (220-280). Therefore, it was named Lu Jia, which literally means "Lu's Residence".

Lujia is an exquisite and harmonious town, which covers only 35.6 sq km, the smallest among its peers in Kunshan. However, it has won a number of honors, including "Model Town of Suzhou in Export-Driven Development", "Model Civilized Town of Jiangsu Province", "National Healthy Town", "National Ecological Town" and "China Model Habitat". In 2015, Lujia reported RMB 13.9 billion in GDP, RMB 1.32 billion in fiscal revenue, RMB 35.35 billion in industrial output, RMB 5.3 billion in value added to the service sector, and RMB 34,760 in per-capita income for farmers.

Lujia is a culturally rich town, which is home to a wealth of cultural resources, including a Sacred Heart Catholic Church that was built 154 years ago; drum beaters who performed the millennia-old art at Expo Shanghai 2010; and the Dragon Dance that has its roots in ancient legends. Lujia is nationally honored as a capital of folk art and culture (Dragon Dance) and provincially as a model in public culture system development.

Lujia also boasts transportation convenience. Sitting between the Kunshan Economic & Technological Development Zone and the Huaqiao Economic Development Zone, Lujia is 45 km away from Shanghai to its east and 37 km from Suzhou to its west. Expressways and railways running through it include National Highway 312, the Shanghai-Nanjing Expressway, the Shanghai-Nanjing Railway, the Beijing-Shanghai High-speed Railway and the Shanghai-Nanjing High-speed Railway. Access to or departure from Lujia is also facilitated by the entrance and exit ramps of the Shanghai-Nanjing Expressway, the stop of Shanghai-Nanjing High-speed Railway and the overpass of the Middle Ring Road in Lujia.

Lujia is also an economically prosperous place, which was among the first group of towns to build industry parks in Kunshan. To date, it hosts over 1,000 companies with a combined investment of USD 5 billion. Its economy is underpinned by four pillars: auto parts & components; household goods; tools & dies; trade & logistics. Among local companies, 2 companies have achieved an annual turnover of over RMB 5 billion; 35 companies, over RMB 100 million; 3 companies have been listed on stock exchanges; and 8 companies have been selected as standard setters. Lujia is also the holder of four "China Famous Trademarks".

Lujia also boasts well-developed social and physical infrastructure. It has 12 schools of various levels, one 2A hospital, 3 community healthcare centers and 4 community clinics; a culture center, an art & sports center, a gateball center, an aquatic center and a cinema. Its Central Culture Square is nationally recognized as a special cultural square. Moreover, Lujia also hosts 15 ecological spaces that totally cover an area of 116 acres, where local people can enjoy their leisure activities. In Lujia, 29.45% of its area and 38.5% of its built area is covered by vegetation.