"The human instict towards the "beautiful" and the "valuable', the tendency to respect the experiences and achievements of his predecessors, and the desire to pass on a similar heritage to coming generations is known to everyone. The concept of preservation, therefore is the offspring of this human impulse. Works of architecture are consider to be the most solid, comprehensive and durable of all the values constituting the "cultural heritage". In Turkey, until today, vernacular architectural works have not been on a sufficient level for various economical or psychological reasons such as speculative interests, technological limitations, reaction towards the "old" and allures of the "new", passion for Westernization. Throughout the time, these environments became thoroughly exhausted and uninhabitable, the society liquidated and destroyed its own architecture. Preservation through re-functioning, revitalization is a very recent phenomenon for Turkey. But a recent acceleration has been achieved in the preservation operations by the attainment of a contribution of the historical environment to the economic life of the country or the region while providing permanence and continuity to the cultural, visual and historical values held on individual or environmental scales. A historical environment in zmir (Symrna) is living a metamorphose in this sence. This environment is consisting of vernacular architectural structures constructed during 1840-1910, on artistic achievement of Levantine culture. As early as the 15th. century amelioration of foreign relation and the privileges during the Ottoman Empire extended to foreigners in commercial activities have encouraged the settlement of an European population called levantines, in lzmir, due to the geographical situation of the city. These people have dominated the commercial life in Izmir for almost four hundred years, have naturally affected the city and had in turn became affected by it. The historical environment mentioned above is located on a region which rapidly transforms in a sub-center. The pressure created by shopping, commercial activities and business potentials influenced the citizens to re-use the buildings even if not on a predetermined program. As the result of the restoration operations for purposes of introducing new forms of utilization, the entire outlook of the environment changed, and the streets that were dilapidated only a few back, have presently been transformed into attractive settings, candidates to take the visitors back to the authenticated atmosphere of 19th. century Izmir. In this study the transformation of the historical environment mentioned above has been analyzed and presented."