Politics and space is a pending debate, as well as, it is urgent to discuss it at the non-metropolitan Chilean cities. In order to answer this requirement, this article explores the macro-politics of industrialization by substitution of imports and innovation´s aftermath in the spatiality of Barrios Bajos's neighborhood, Valdivia and it transforming effect in the short, but also in the long term. The period used corresponds from the beginning of the 20th century to 1973 and then from the beginning of the new millennium up to date. The methodology incorporates different sources such as an exhaustive bibliographic review, innovation projects funded by the State database, field trips. All this was sort out through making a summary table and a cartography. In addition, to illustrate some detailing aspects of the investigation, it carries out a photographic record and in-depth interviews. As a result, we establish that, being the macro policies -agreements made by the elite -they pass the ongoing governments and this is why they are gravitating for the contemporary city. Macro-policies transform the neighborhood through a slow, but sustained process. It adapts to the policies' required material needs, under a conceptualization that we call "political-spatial occupation coexistence".