In urban development, we must make consideration of specific culture of the city formed in the long history and we should have responsibility for the next generation to succeed it. Kashgar located in the northwest of Xinjiang in China is a famous historical city with abundant historical heritages. A traditional district located in central area is one of a few traditional ones to convey the ancient culture, which consists of the traditional architectural houses. However, the traditional environment of the district might been destroyed by urban renovation and seismic retrofitting in these years. We will consider to establish planning and debelopment theory which satisfies three different kinds of planning objects: conservation of the traditional environment, retrofit of traditional houses, and economic development. We report the present situation of the district and discuss the first stage to achieve our purpose.