Concern over the viability of urban heritage management as a tool for equitable economic development and poverty reduction has emerged as international development banks increase lending for culture and heritage. This dissertation examines urban heritage management and its ability to connect social, economic, and democratic issues to promote sustainable urban futures through a case study of Quito, Ecuador. Quito, the first city in Latin America to be recognized as a UNESCO World Heritage Site in 1978, represents a strong example of an internationally financed historic preservation project and the dynamic struggle between the forces of planning and order and spontaneous organization of the city. This dissertation examines the contested role of the historic center: examining the use of heritage as a tool for development and seeks to understand the role multiscalar governance in the redevelopment of heritage sites. It assesses and evaluates this new governance structure and the democratic process, as well as the impacts on civil society, in particular informal vendors who worked in the historic center prior to the initiation of the project. The dissertation shows that heritage can be used as a catalyst for more than conservation and provides new insight into semi-formalization measures and degrees of informality. It also demonstrates that changing perceptions and re-imaging neighborhoods is a slow process which requires more than clearing public spaces and rehabilitating old buildings.