Considering the background of the emergence of the smallest administrative unit "She Qu" (translated as "community") in Jiangnan, China, this study investigates the real status of this community made up of local inhabitants. "She Qu" is the institution, which originally aims to provide inhabitants with welfare-service, and later to stimulate them in making their life better within the community (i.e. She Qu) on their own initiative. However, there is a divergence between "She Qu" as an administrative unit and "community" in the consciousness of inhabitants, which leads to dysfunction of the administrative system. In order to solve this problem, we have to understand the concept of community considered by inhabitants and its status. This study aims to explore the real status of the community based upon daily-life of local inhabitants, through anthropological fieldwork focusing on masked performance. Conducting both qualitative and quantitative research and referring to historical materials would contribute to anthropological theories academically, and this study also has real-life implications for improving the welfare system. Another purpose is to keep a record of the society and culture reflecting faithfully the actual situation of local community in the style of ethnography, in order to provide a feedback for the local society. In other words, this study not only follows the tradition of social anthropology, but also has practical aims similar to applied anthropology.