By taking the residential environment change in Tai'an City of Shandong Province over the past 30 years for example, the paper had introduced characteristics of traditional residential culture and their influence on the urban residential spatial pattern, and explained the mutual effect and guidance between the establishment of new residential concepts and the extension of city context. It had pointed out that the government planning and development should be considered from historical and cultural perspective rather than economic perspective. Through the analysis of problems at each level, it had proposed that urban construction should pay attention to historical inheritance, and characteristic livable city construction should lay stress on the coordinated development between urban economy and historical culture.