Since the 1980s, communities have played increasingly important roles in the management of urban society with the deepening of economic reform and opening up in China, and to tap the potential of citizens has become the goal of community development. But the development of community governance has brought about more and more contradictions among three parties representing the government, residents and the community. Communities have gradually been faced with problems of weakened traditional functions, de-centralized interests, aging of population, diversity of community service and an inefficient management system of community governance. Those problems have limited not only the development of community construction but also that of a stable and harmonious society.This thesis explores the problems of community governance and suggests countermeasures to those problems through case study of Neighbourhood S in District Y, Shanghai under the frame work of public administration theory with particular reference to the basic tenets of new public service theory, citizen governance theory and the theory of government functions.To start with, the author gives a critical account of citizen governance and community governance theories and then explains the objectives, principle and significances of citizen governance theory by making analyses of entities in community governance with relation to citizen governance.Then, the case of Neighborhood S in District Y, Shanghai is explored in depth with regards to citizen participation in community governance. As a result, major ways of community governance with citizen governance are found out, which further reveal the problems facing the community governance and the causes leading to these problems. This section makes good use of surveys, literature review and data analysis.After that, the paper discusses the theoretical basis for citizen governance and its policy preferences by drawing on the experience and practice of citizen governance in community governance in other countries.Eventually, optimized ways of community governance are suggested with the application of citizen governance theory. It is suggested that community governance be "citizen-centered" with diversified participation to achieve balanced unification. Breakthrough is to be made in three binary aspects including system and innovation, control and cooperation, and conflict and negotiation for integration of citizens and communities, which will then further promote democracy construction in community governance eat grass root levels, provide more ways for citizens to participate in community governance, and to accumulate experience of strengthening social management in an innovative way.