Grassroots organizations，such as neighborhood committee，are the micro foundation of social governance and basic force to build harmonious society. Therefore，it is very important for us to innovate community governance，optimize and reconstruct governance structure and rights-liabilities system of grassroots organizations like neighborhood committee，develop social organizations at community level，promote community consciousness and participation，and create a multiple social governance structure and system in order to promote government transformation and positive role of grassroots organizations This chapter is divided into three parts：current situation of the governance of residential areas；problems and challenges；and approaches to innovate and improve governance structure of residential area，and promote residents’ self-governance capacity.