This article tries to bring the squatters back to the historical context of urban development and urban planning, argues the essential issue of squatters in Taipei, unveils the myth of marginality of squatters while disputes against legalists and city beautification promoters who were blind to class issue. The author highlights that the formation of squatters in Taipei was brought about firstly by postwar political migrants, and then was oppressed by the urban-regional process of dependent urbanization and unsuitable regulation of urban policy on land and housing. The state permitted the existence of squatters intentionally in order to relieve the pressure on urban collective consumption issues. Normative planning system unable to arrange spatial resources rationally, the bulldozer-like clearance of squatters caused the transference of slums, the “social morphine” of the green rhetoric even polarized the urban space and society. As a particular state of informal housing service, the squatters afforded more than 30% housing service in Taipei in early days. From air-raid escape, urban passage, city beautification to green bulldozer, each great clearance of squatters was to match the city functions and dominant meanings conferred by the dominating classes. Till now the squatters still play important roles on the middle-low income housing system that the public sector unable to supply sufficiently. The historical formation of squatters concerns the urban poverty and class issue during the urban regional restructuring process. If the distribution logic of social-spatial resources doesn't change, the phantoms of historical debts will float above the city circulatively and become the origins of urban social movements.