During the last four decades, China experienced the fastest urban population growth in the world. After the establishment of the Special Economic Zones (SEZ) in 1979, due to the tremendous demand for new construction land, cities authorities expropriated farmlands to establish new urban developments. However, in order to minimize compensation costs, they left the housing plots of the former villages untouched. Hence, those were encroached into the city’s structure becoming urban villages (villages-in-the-city). The SEZ began to attract more and more migrants from all over China. The demand of housing in the villages kept on rising and the expansion of the plots became extreme and illegal. The spatial results of this process are overpopulated but also lively, active, mixed-used, and human-scaled environments. Since most of them are located in valuable locations for the real estate market, the Chinese government deals with the “issue” with their demolition. Diversity and variety of the built environment diminish with each bulldozing, slowly authorizing the loss of a unique urbanism. Historically, villages were located in strategic points according to the characteristics of the landscape, and closely related to the blue system. This relationship has gradually diminished. The water infrastructure within the entire Pearl River system is now extremely polluted, mostly due to industries. As a result, nowadays water is seen as an issue and a threat rather than an opportunity. In Lijiao village, the chosen design location situated in Haizhu District (Guangzhou, Guangdong Province), the high demand for housing made possible the demolition and replacement of numerous cultural landscapes along with the underground canalization of watercourses. Only the main stream is still uncovered but the water is polluted and it serves as linear parking lot for the villagers. The aim of the thesis project is to highlight and eventually exploit the positive aspects and the values of urban villages, through the process of research by design. In such manner, Lijiao is re-integrated into the city’s structure and the lost connection with the water landscape is re-defined, serving as a carrier into the urban village while strengthening its identity. The expected result is an improvement in quality of both the public space and the water sanitation system.