in May 2020，Premier Li Keqiang mentioned in the government work report that this year，39000 old urban residential areas will be rebuilt. Speeding up the transformation of old residential areas in cities and towns is an important way to firmly implement the strategy of expanding domestic demand and build a new development pattern. It is to meet the people’s needs for a better life，promote the people’s livelihood，expand domestic demand，promote urban renewal and transformation of development and construction mode，and promote high-quality economic development. Over the years，Shaanxi Province has been carrying out the renovation project of old residential areas. This time，in response to the government work report，the task of renovation of old residential areas in cities and towns has been clarified，with the focus on the renovation of old residential areas completed before the end of 2000. Based on the panel data of 11 urban areas in Shaanxi Province，this paper constructs the did model to investigate the economic growth effect of the old community transformation policy on Shaanxi Province，and tests the effect of policy implementation by controlling the variables such as per capita fixed assets，infrastructure level，government general budget expenditure and industrial structure. Through the research，it is found that the old community transformation policy can improve the regional economic level.