This research testifies the thorny conflict problems of squatting indirectly caused by the decay of Hongmaogang old fishing settlement and traditional industries in New Caoya in the process of the development of Kaohsiung port city based on structuration theory. Firstly, structuration theory is briefly illustrated along with the methodology of strategic conduct analysis and institutional analysis proposed by Moos and Dear (1986a). Secondly, structuration theory is applied to analyse the difference of structural properties between the relocation of Hongmaogang and renewal of New Caoya. It is shown in the institutional analysis that political and economical institutions are failed to be established due to the lack of resource and medium in the renewal of New Caoya. Thirdly, based on interviews and second-hand data, the significance of land ownership for urban development is revealed in the strategic conduct analysis of New Caoya old settlements.