Based on an intensive fieldwork in old residential communities in Shanghai from 2015 to 2016,this paper examines the quadripartite interaction among residents’ committees,property management companies,homeowners’ committees and residents in the process of collective dispute settlement in the urban privatized public housing neighborhoods.The paper finds that the residents’ committees play a leading role in communicating and coordinating with the other three parties,which contributes to the non-judicial settlement of collective interest disputes in privatized public housing neighborhoods of today’s Shanghai.It argues that state-led community governance has its significance in realizing effective grassroots community control as well as defusing mass grievances.The quadripartite interaction is helpful to understand the local government’s trajectory of grassroots governance through the rationale of the Party-state’s institutional arrangement in the absence of formal channels of dispute settlement within the system in urban China.