This study on the settlement preservation has dual themes of ensuring the continuation of the architectural history and culture, and emphasizing on the needs of contemporary living space. We survey to understand what spaces has been changed when the dwellers lived their traditional shop-house for contemporary life. The intention is to set up a suitable way for settlement preservation on the view of the dwellers. We study these transformations on the traditional shop-houses of the Sheen-None street, Wu-tiao Gang, in Tainan city, Taiwan. The results indicate that preservation projects proposals should make a balance between preservation and alteration in the future. The north shop-houses preserve the first hall to the second hall, and the third hall could be rebuilt, and satisfy the needs of the architectural renewal. The south shop-houses preserve the first hall to the first atrium, and the second hall could be rebuilt, and satisfy the needs of the architectural renewal.