Based on the upcoming 2010 World Expo of Shanghai. According to 'moving out' policy of Shanghai government, a large percentage of residents from Shanghai's old downtown area are being moved out to a district on the outskirts of the municipality. In the context of moving out policy and shifting community space of 'Longtang' residents, my research explores how water can be used to forge a new typology for the Xinji residential area in developing Shanghai. The new typology of residential area is defined by a new type of community space. Water, edge and corridor are examined as three main concepts to create this kind of new community space, where residents can be provided with diverse spatial experience and various spatial effects through spatial transformations in and between private and public and diverse programs in a residential area. 'Longtang' is one of the key precedents I am looking at for the purpose of studying water edge conditions and corridor conditions, and to deduce a way to best design hybrid community in the Xinji residential area, which is selected as my research site. It is identified as one of the peripheral node for the moving out policy by Shanghai government? My research, therefore, tries to explore a new typology of Xinji residential area, which can provide both existing residents and 'Longtang' residents with diverse water based community space in the residential area and its context.