This chapter introduces the institutional context of urban redevelopment. Section 3.2 presents the background, processes and consequences of rapid urban development. Section 3.3 examines the efforts of the central and provincial governments in formulating urban redevelopment policies. Section 3.4 analyses the measures adopted by the Shenzhen municipal government to facilitate the implementation of participatory urban redevelopment. Section 3.5 explores the various mechanisms of dilapidated residential redevelopment in Shenzhen. Finally, Section 3.6 concludes the chapter.