This paper maps the circumstances that enabled the urban transformation of the Prague-Smíchov in the 1990s. This paper aims to analyze the factors that led to the revitalization of an area of almost 80 000 m2 inside the existing construction. Knowledge and understanding of the context and principles of the development from the 1990s is all the more important because these structures are going to be in close connection with the development project Smíchov City, which is currently under construction. This project is being built in approximately the same area as the construction from the 1990s and has the potential to transform the functioning of the entire area in a significant way.