After analyzing the current characteristics and problems of residential space in small towns in the Pearl River Delta Region(PRDR), combined with the New Urbanism theory and community construction methods, this paper puts forward a restructuring strategy of residential space, which includes the reorganization of residential space using the 'community – residential quarter – neighborhood' model, the reform of the community management mode based on the 'transformation from village council to resident committee,' the restructuring of the multi-level community service system to meet the diversified social needs, and the construction of a mixed community addressing the issue of residential segregation and the aim to achieve community integration.