The aim of this chapter is to examine the reasons behind the increasing residential disparities in the city of Gdansk. Namely, I will look how the changes in urban policy, urban planning and ownership regulations have affected the development of the old and new residential areas in the city. Processes of decline and the emergence of gated communities are of main interest for illustrating urban development and specific examples of residential areas of Gdansk have been used to demonstrate the important role of urban policy and urban planning together with ownership conditions on the development in the city since the fall of communism. I argue that the lack of an explicit urban policy, including urban planning, has created enclaves of wealth and poverty in the city. Furthermore property rights’ regulations are complicated and unclear and hinder improvements of old and historical residential areas and a more integrated development of housing investments in the city.