In the second part of China's urbanization, shantytowns supported by the policy finance have played an important role in urban transformation. However, the role of the reform of shantytowns in renewing cities in China has its limitation; a considerable number of old districts should not use high-cost, high-risk demolition operations. Anbound suggests local transformation and upgrade of the relatively old districts should be considered instead. As a result of the conducting the operations in situ, this will not involve in demolitions or the moving out of the residents to move, which can effectively reduce social disturbance and interest disputes.