Being a traditional architectural form in the South of the Five Ridges, arcade integrates the functions of transportation, residential area, commerce as well as entertainment into one with rich regional characteristics and high humanistic and economic values. With rapid expansion of Luoding of Yunfu City in Guangdong Province, a number of problems gradually surfaced in Ximengang, the traditional arcade blocks of old city district, such as the public street being occupied, deficiency in traffic indication system, terrible condition of the roads and so forth. Moreover, the dramatic contrast of traditional and modern buildings，and willful expansion of modern buildings are also considered to be issues in arcade blocks. Confronted with the current situation, overall protection, authenticity protection and scientific transformation strategy are proposed. The strategy of demolishing, preservation along with construction could be carried out. Specifically, discordant modern buildings and illegal buildings must be torn down, while function replacement method could be taken to conduct the renovation for the preservation of the arcade. Brand new buildings out of urban expansion would be constructed in the form of traditional arcade.