In recent years, with the gradual advancement of community construction, various action main bodies in the urban grassroots society start playing game based on their different rights and interests. Because of the differences in their goals and interests, cooperation, competition, and even conflict appear in the urban community. As a result, urban community has become a major cross point for different interest pursuits and the game place for the government, the public, and other social organizations. Under the background of the market economy, the social integration problems of the urban grassroots and the complicated relationship between the state, the market and the society hiding behind have arisen the themes of the conflicts of interest among the urban community residents, the reintegration of the grassroots communities, and the modernization of governance. The residents of Hangzhou ZJ community expressed their interest pursuit through actions, the interest conflict due to unsatisfied pursuit, and the dynamic presentation of order formation of grassroots level, all reveal the dilemma of contemporary Chinese urban community governance and the urgent need to modernize the governance system.