The power distribution network is considered complex and hence the reliable and safe operation is a non-trivial task. At present, grid management of urban power grids is an important and complex task in modern urban management. This provides the opportunities for more efficient management of the power distribution systems. This work exploited the network partitioning and demand characterization method for management of low voltage power distribution systems. In detail, this work investigated the evaluation and application strategies of power grid in urban villages, and constructed a grid indicator system from five dimensions: power supply capacity, equipment operation, power quality, equipment level, and intelligence level. In addition, the electricity demand is characterized through data analysis. Finally, the proposed solution is evaluated through a case study and the numerical results confirmed its effectiveness.