Since China started the practice of reform and opening to the world, with the introduction of new policy aimed to modernize the housing industry and re-build the residence provision system, the housing sector has become an essential component of the nations economy that playing a key role in enhancing peoples living standard. Nevertheless, due to some historical reasons, there was no substantial progress made in Shanghais housing industry during the thirty years before the economy reform. Breakthrough was made in 1980s, during which the house construction started to boom. Notably from the beginning of the 1990s, the central government established a strategy to build PuDong. Shanghai into the center of global economy, finance and trade. A high opportunity spead out before Shanghai making its residence industry soar. In the course, scientific policy-making mechanism has turned out to be the most important factor that brings about a steady and rapid progress. The subject of this dissertation is thereby made as “the evolvement of Shanghais housing development policy". The dissertation primarily consists of seven sections. Section 1: Based on the theories related to scientific policy-making mechanism, the general concept, system and functions are analyzed with regards to housing policy. This section constitutes the basis of the following contents. Section 2: In this section, description and analysis are given to the general status of the housing policies adopted during Chinas planned economys time. as well as the transition of peoples thinking and policy in the later economy reform. Furthermore, the housing policies specifically carried out in Shanghai are reviewed. Section 3 (1949-1978): From the evolvement point of view. the changes in Shanghai residence facility planning, construction, investment, standard, provision and administration is narrated under a planned economy background. Section 4 (1979-1990): With the association to the national economy progress, analysis is made on the main issues came up during the initial stage of China reform as well as corresponding regulations taken thereupon. Section 5 (1991-2000): Within this period of time, promoting the housing reformation became the key issue of the national and regional policy regarding housing industry development. The exposition is thereby given in a comprehensively way, pointing out the innovative regulations in housing construction and administration. Section 6 (2001 - ): The characteristics of Shanghai residence market development is analyzed in association with latest reforms launched in the 21st century. Expositions are also made on the new trends in modernization of housing industry and optimization of government regulating capability. Section 7: As the concluding part, the author explored the prospect enhancement of the housing policy making in the next stage based on the "scientific development" theory, giving a analysis of the anticipated issues and effects as well as related reference and comparisons.