A better understanding of the squatter communities of Hong Kong is achieved by utilizing three related, though analytically distinct theoretical perspectives. On the level of interpersonal relationships, the community is seen to be the major context in which the squatters interact with each other. Four features of the squatter community: its relatively long and stable history; the common physical and social hardships faced by its inhabitants; the open structure of the community which encourages the children's communal play patterns; and the strong ties retained with the Chinese heritage, are shown to allow communal values to be strongly expressed in the squatters' daily lives. On the macro-level, the community is found to be a location within the power structure of Hong Kong society, which is characterized by minimal input into important decision making bodies and by the inability to resist exploitation by the powerful organizations which dominate Hong Kong. And on the cultural level, the squatter community is seen as a cultural message about the less of traditional Chinese values; the exploitation of the Chinese populus, the ever increasing poverty of culture; and the inability of the people to affect social change.