It included razing most of the old wooden buildings in the city centre and replacing them with new modern structures in concrete.
Over the years the area has changed from seedy to trendy, and today is considered a choice location for the urban-minded with a sense of history.
Gamle Stavanger has grown such that it now covers more than 250 buildings most of which are small, white wooden cottages.
The area also includes the Norwegian Canning Museum which displays a typical factory from the 1920s.
During the Council of Europe's 1975 European Architectural Year, Gamle Stavanger, together with the historic fishing village of Nusfjord in Nordland and the former mining town of Røros in Sør-Trøndelag, were identified as examples of how conservation of old buildings may well coincide with use, and how rehabilitation can be done without loss of character.