This paper aims to release contrast between the role of conservation in the formation and the continuity of the local identity, at the historical site, Assos that has been declared as the historical and natural site. Assos is a small historical village, which dates back to 2th B.C, in North Ege. The contradiction of the economical developing and the limiting spatial structure is explained with the concept of conservation. In this study it is questioned that, in the historical and natural site, does the spatial continuity limited by the conservation restrictions affect social continuity? In the sense of this question a case study including a spatial analysis along with a face to face inquiry is conducted. By means of spatial analysis the relations between the space and the social cultural structure are compared both in dwelling and the settlement scale. Houses typologies, the organization of the public and private space give us implications about the changing spatial organizations. The second stage of case study; a total of 67 inquiries that compare the indoor and outdoor activities, habitual choices, choices of occupation had been made. By the way the social and spatial structure of Assos settlement are analysed. Historical areas encounter some difficulties, these are: the effects of changing social and economical conditions, character of the social structure, spaces that are not functional anymore. The settlements that cannot supply the requirements of changing conditions are always under the threat of being degenerated by the popular culture. In other words, one of the most important issues is identity. The theoretical concept of social and economical stage of this study is based on studies of M. K_ray (1964) in Ere_li and also a case study of E. Kongar (1986) in _Izmir and research theories of Rapoport (1980, 1990) concerning cultural aspects of environmental adaptation and design. To conserve the continuity of local cultures and to keep up with the change of their constitution are the critiques to the present settlements. Transformation of the present buildings according to the developing demands and needs and the new perspectives to save historical and cultural heritage are one of the important topics of the world architecture. Main problems, during the process of participation of historical settlements to life cycle, are cultural transformation and spatial and social continuity. Basically, social continuity is the evolution of the elements that form the social characters of the settlement (these are social, cultural, economical and demographic structure) as well as, preserving the local identity that constitutes environmental values. It is essential to conserve and sustain the identity of the settlement for the social continuity. The acceleration of the spontaneous changes in the settlement by external factors such as industrialization, tourism or migration, is accompanied by the cultural transformation. This transformation is inevitable and unfortunately, its limits are unpredictable.There are two important criterions for the spatial continuity of the historical sites such as Assos. The first one is the conservation of the historical buildings that have an important role on the constitution of the present historical identity and the other is the quality of the relationship between the new and the historical settlements. Despite the tendency for the spatial enlargements in Assos, parallel to the economical improvements, it has been prevented by the Law of Reconstruction. This situation causes some tensions for the public. There is an important point that should be mentioned, regarding the principle “historical sites and the local public must be considered as a whole and the social continuity is as important as the spatial continuity. In order to prove the principle that mentioned before, an implementation including face to face inquiry which determine the social and spatial structure of Assos settlement and a comparative case study including a spatial analysis of historical and new settlement is achieved. The inquiry ask for the answers of the changing in life styles, economical statue, behavioural choices, communication tools between two generation that affected from touristic development in Assos. The next stage of the case study gives information about the spatial differences between historical and new settlement separated by city wall located out of the historical settlement. By the help of this case study, it is understood that in conserving historical settlements, spatial continuity depends directly on social continuity and public oriented restrictions. Suggestions for the solution of these problems is an ambience of discussion has been created in the settlement areas, being announced to be site areas, in topics such as the necessity of making inhabitants gain awareness in the framework of the concept of protection, and the culture of the region is also a value which has to be protected. The site conservation projects that have been done in spite of the public cannot give the required results. Another reason for this is the lack of projects prepared with the attendance of the inhabitants. The lack of the councils that would control the conformity of the application projects to the conservation laws is another problem.