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Cities have undergone many changes since the 1950s, not least the expansion of urban areas to the detriment of the historic central areas, some of which have been left to decay. In Portugal the most visible results of this phenomenon are found in the metropolitan areas of Lisbon and Porto. To address this problem, the Portuguese Government conceived the first legal instrument for urban regeneration in 2004 which allows the local administrations to form publicly owned companies—urban regeneration companies (SRUs) to actively endorse urban regeneration in historic city centres. This paper discusses the activities of the Porto Vivo SRU, one of these companies created in Porto, in the context of the Portuguese milieu of urban regeneration and evaluates Porto Vivo's operation.Peer Reviewe