The general problem of the thesis project is the issue of declining liveability of old neighbourhood area and the lost place identity of Shao City. To be more specific, the problem focus is the fractured social-spatial network between the old neighbourhood and the area for new social class like Kuanzhai Alley & gated communities with declining third place for local residents. The abandoned historical buildings,crowed courtyard space occupied by the informal constructions & car park and Kuanzhai Alley full of tourists and commercial activities reduce the third place of the neighbourhood and decrease its liveability and identity. The spatial gaps in Shao City have been formed. Meanwhile, the social condition in the neighbourhood is degrading. The social class is lowering in the old neighbourhood due to the rise of Kuanzhai Alley as many original residents could not stand the tourists. The upgrading of the social class in gated communities and the inaccessible public space in the new social class area caused the social segregation between the old social class and higher social in this area. From the heritage perspective, it is crucial to reconnect the social-spatial network with rich third place in Shao City for new identity. From residents’ perspective, the complete social-spatial network with good third place is important for improving the liveability.