As low-growth in economy sustains, the need for a development of coping urban management policies has much increased. This paper aims to analyze the impacts of urban decline on the urban management costs and to discuss policy instruments that deal with the urban and regional decline. In order to do so, this paper reviews the theories of urban decline, urban management, local government expenditure, and shrinking city. As a result, this paper suggests empirical evidence that supports the impact of urban decline on the urban management costs. Based on the theories of urban growth and the experiences of domestic and overseas where urban regeneration planning policies are implemented and practiced, this paper discuses some urban regeneration policy instruments to mitigate the financial burden of urban management including the provision of administrative bases to implement right-sizing plans, promotion of private investments on the urban regeneration projects, and the increase of the accessibility to the daily-life SOC.