Historical area is the unique place to a certain context because it contains the most valuable culture on the site and also keeps recording its history. While the increasing pressure from developing tourism and booming population seriously impacts the old site resulting in culture lost. This thesis investigates a typical historical area in Xi’an in a logical process. The process starts with analysis from local fabric as urban scale to living unit as family scale to make a clear view on local culture lost. According to the context, set up appropriate criteria to select typical site to make sure the solution can be well integrated into similar scenario. Then, based on the analysis, generate possible conceptual responses. Finally, design from a modular unit, to courtyard space and to the final block prospect, and make sure the final solution in every step could not only solve the problems, but also accommodate the local life style. The whole design process appropriately integrates the concept of shared space in dealing with the overload urban and living density. The application of the phasing study makes the whole research and design process more sustainable and feasible.