Globalization not only focuses on a few important global cities that adapt to the global economic order, but also integrates cities located in close proximity to one another into global city-regions. City-regions are important sites of policy experimentation involving new regulatory structures and governance spaces that are strongly influenced by neoliberal policy discourses and practices. However, current work on city-regions is in danger of making a priori assumptions-coherent inter-urban networks and empowered regional governance entities must be created to strengthen territorial competitiveness in the process of globalization. This paper thus aims to examine a realistic neo-liberal city-region by exploring the discourse and reality of regeneration in Keelung City. Once a thriving seaport in metropolitan Taipei, Keelung City today is shrinking, and its transformation is interweaved with three predicaments. First, the traditional port-based economy suffered a crisis in the post-industrial era. Second, the city faces problems of population and capital flight as a result of the magnetic attraction from central Metropolitan Taipei. Third, Keelung City's institutional inertia of following so-called neoliberal best practice strategies potentially is accelerating its marginalization. Obviously, a considerable gap exists between the neoliberal theoretical script and the reality in city-regions.