Old Town Surabaya is deteriorating due to the decentralization policy in 1920, where it had shifted the center of Surabaya from Old Town. Thus the economic activities in areas were declining and it triggered peoples to move out from Old Town. In addition, the Industrial Zone Allotment Policy in mid of 70’s had limited the industry expansion in area. Therefore Old Town has lost its attraction as a place for living. Moreover, this area has a very limited space for further development. On the other hand, Old town has a great historic value and as an identity for Surabaya that need to be preserved. The aim of this graduation project is to study about what strategic program can be implemented in the Old Town Surabaya in order to preserve the historic value in term of its social economic life and built environment from deterioration. At the same time this should accommodate the future needs of the city of Surabaya, as well to create a better living condition and improve the living quality of Old Town Surabaya.