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As any other old cities, there are many deteriorated areas in the center of Cheongju city. The development method such as clearance redevelopment and individual development created homogeneous urban environment and lost the regional characteristics. And so the main purpose of this study is to propose a new urban renewal method such as conjunction development of lots and clarify the optimum tentative plan of collective habitat by this method. The results through this study are as follows.For developing the residential area by conjunction development of lots, the optimum lot size is about 1,000㎡, the building area below approximately 2,000㎡, and 19 households. This small scale development unit is the proper type for developing urban residence, and sustaining the existing community of urban area. The optimum scale of residential building is between three and five-storied in size. In the size and type of residential building above mentioned, it would be represented as small scale habitat for developing the deteriorated residential area in the center of city by preserving existing urban fabric.