The renovation of urban shanty towns is a major livelihood project.In recent years，with the CPC Central and the State Council increasing the shantytowns，and with the introduction of preferential policies，the Jiayuguan Municipal Government attaches great importance and seizes the opportunity to continue efforts to increase the shantytowns，and effectively improves the difficult populace's housing conditions，and solves the housing difficulties of low-income families，improves the appearance of the city.However，there are still many problems，such as the shortage of funds，the difficulty of housing expropriation and management after construction.Jiayuguan should start from the aspects of broadening financing channels，strengthen the cooperation between the government and the market，mobilize and give full play to the main role of all parties，make a reasonable plan for the renovation of the shanty towns，innovate the path of local development，and strengthen and improve the work continuously，so as to enhance the living environment and quality of life of urban residents.