Abstract: Water system problems in high-density old towns are prominent, meanwhile, high-density old town exists historical problems resulted from urbanization development. There are a large number of old communities, the urban space is close, and there is basically no stock of undeveloped land. Taking the old urban area and urban village area of Luohu District in Shenzhen as an example, this paper studies the integration of sponge city construction system with old city reconstruction, renovation and renewal planning, summarizes the technical methods and main implementation paths of systematic sponge city reconstruction and micro renewal in the area, and considers the key projects of government construction and micro practical projects of people's livelihood through the way of government and social investment. The multiple co-construction mode of government, society, street and community managers, village collectives and citizens have successfully completed the transformation of sponge city, providing practical experience for similar high-density villages in the city and old urban areas to promote the construction of sponge city.