Like many other small towns in China, Yueqing still keeps its astonishing geographical Fengshui patterns in a traditional way. While the Yandang Mountain foot in North forms the background of Yueqing old town, there is a pagoda on each mountain foot of East and West, safeguarding Yueqing old town for hundreds of years. The old town is surrounded by water on three sides: Gold Brook and Silver Brook on the East and the West, and Heng River on the South. The old town opens up to southeastern direction, facing the sea. In the past decades, the whole town has been expanding continuously from the North to the South. Along with the change of social structure, Yueqing is facing the challenge of an aging society and retail recession. Instead of continuing the glory of yesterday, Yueqing old town confronts the danger of decline. Random new buildings destroyed the traditional street layout and its spatial fabric. The Yueqing government intended to optimize the cityscape, trying to build up high-rise buildings which are the same as those on the northeastern corner of the city. Different from the government’s opinion, the architects stopped the high-rise building plan immediately and put the old town into the context of traditional urban layout through reduction of building height and increase of building density. The final result particularly underlined the following three aspects: Structure: recovered the main roads of North-South direction and the ‘fishbone-like’ urban structure:  conceived of East-West bypasses.  Space: built main and subordinate roads, lanes, and centers and rebuilt the traditional life space near water.  Scale: found a suitable scale for transforming from the northern old town under historic preservation to the southern new town and rebuilt traditional urban space through modern reinterpretation.