Historic districts carry the memory and culture of a city, and witness the iteration and renewal of the city. As a typical representative of the water town culture in the south of the Yangtze River, the renewal of the color planning of Yishang Street can promote the improvement of urban quality. This study will start from the historical context of Yishang Street from the perspective of renewal, use literature analysis and field investigation to analyze the related problems existing in the color design of Yishang Street from the perspective of color composition, and adopt the combination of tradition and modernity for renewal planning. The study found that the existing color system of Yishang Street is dominated by the traditional color tones of Jiangnan, but the intervention of some commercial facilities leads to color conflicts, and its color palette cannot reach a harmonious state. This study will look forward to the development of color design in Huzhou Yishang Street, so as to realize the continuation of the visual quality and cultural connotation of the historic district.