Based on the conceptual categories of the production of space, consumer culture and social agency, we aim to analyze what roles the social agents play and what power they generate in the rejuvenation process of New Pei-tou area in the mid-1990s. The study will analyze the mechanisms used by New Pej-Tou in coping with the problems of rejuvenating its recreational space. The theoretical significance of this rejuvenation will also be analyzed. Owing to its ubiquitous hot-spring resources, New Pei-Tou has been a health resort since the period of Japanese occupation. After a century of development closely related to sex industry, New Pie-Tou declined following the annulment of public prostitution. In the mid-1990s, in cooperation with local communities and relevant government departments, New Pei-Tou began to rejuvenate after the construction of a hot-spring museum and the establishment of the Yangmingshan National Park. During this process, a strong community consciousness emerged. These developments have energized community actions. A vivid picture of “rejuvenation” has appeared. This study demonstrates that New Pei-Tou’s rejuvenation was a result of actions by the state and local communities. The construction of the local hot-spring museum and the central government’s decision to establish the Yangmingshan National Park Provided the necessary environmental conditions for the rejuvenation of the place. However, the efforts and strategies for redevelopment made by the local communities were also indispensable which gave rise to a strong community consciousness. Subsequent investments in New Pei-Tou by some large financial conglomerates produced a recreational space characterized by the culture of high-level and elitist consumption. However, the plan to build a cable tram line to relieve tourist congestion in the Yangmingshan National park has become a hot issue which is challenging the cohesiveness of the local communities.