Vernacular settlement is a sum of settlements that keep traditional landscapes in the process of urbanization, and its coverage coincides with that of urban community and rural settlement to some extent. It is a phenomenon of social development against the background of rapid urbanization. As a national famous historic and cultural city, Tianshui City should have had excellent traditional cultural genes as the driving force for its development, however, only fragments of some historic blocks have been left in the recent urbanization. This paper, on the basis of investigating the old urban district of Tianshui City, analyzing the historical phenomenon, summarized the root causes for the status quo of vernacular dwellings in the city, so as to raise the concerns on humanistic thought, and provide proper guidance for the sustainable development of vernacular settlement.