In order to respond to the problem of urban decline, different approaches have been defined in such a way that urban regeneration approach became current in the 1980s (and more wildly after 1995) as a replacement for urban renewal. Urban regeneration is the holistic process of reversing economic, social and physical decay in areas where it has reached a stage when market forces alone will not suffice. This article approaches aimed at using urban regeneration planning in Dolatkhah case study situated in 19th Tehran municipality region using Analysis of Interconnected Decision Areas technique in order to respond its urban decline. Findings of this article show that the attitude of decision-makers to deal with urban decline is more physical than social and economic. Urban regeneration planning at the local level cannot answer all the problems of social, economic and physical urban decays and there is the necessity of planning system reform from top to down. The results of this article states that with a technical office establishment based on Tehran renovation organization support and with assuming of institutional planning implementation, community development asset-based approach is more adapted with Dolatkhah conditions. Institution planning and its process in Dolatkhah have been introduced in this article.