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This study looks at the ways how spatial identity of neighbourhoods is formed and considers implications that may be stated for policies seeking the ways to improve and enhance their development in future. The area of Bolderaa neighbourhood in Riga, Latvia, is a typical historical neighbourhood of Riga, having gathered evidence from various phases of evolution of urban structure and urban design. Through the investigation of Bolderaa the study examines the results of changing urban shape, pattern and scale by time.