I. URBAN DEVELOPMENT AND ENVIRONMENTAL PROBLEMS
B. The formation of an international metropolis
The separation of residencies of westerners and Chinese stipulated in the 1845 Land Regulations was broken by the farmers' uprising XiaoDao Affiliation in 1853, and the citizens in avoiding the war took refuge in the settlements where the Chinese population suddenly increased to more than 20,000. The colonists, in order to gain extremely handsome profits, built over 800 houses to accommodate Chinese people. That was the beginning of the real estate industry in modern Shanghai. At the same time Shanghai Local Volunteer Corps was established in the settlements, allegedly for self-defence and therefore the Land Regulations were revised in 1854 to acquiesce in westerners/Chinese co-living. A Shanghai Municipal Council and police station were also set up in the settlements which resulted in the Chinese people there being governed by foreigners and Chinese sovereign rights beginning to disintegrate. When the army of the Taiping Heavenly Kingdom attacked Shanghai, there were more than 300,000 (in1860) and 500,000 (in l862) Chinese people living in the settlements and Chinese officials were soon rebuffed by the Shanghai Municipal Council when they tried to levy taxes. Even worse, when the Mixed Court was established in 1869, the settlements had their own judicial powers, and their political and law systems being almost established, they had become a country within a country where colonists could enjoy special rights.