This paper studies the main characteristics of the traditional urban configuration of Arab cities, as an important built heritage, discussing the approach adopted with such configuration at the local level, and examines its ability to preserve the character of the city, as well as, its responsiveness to the recent  requirements of its society that constantly change; in order to reach the appropriate procedures to deal with the traditional urban configuration of the Iraqi city to achieve a vital cultural communication with the vernacular built heritage, by dealing with the Form-Moral Values structure. Due to its importance within other traditional Iraqi cities, the research chose Al-Kadhimiya as a case study, so it discusses and compares three projects in the competition of developing the surrounding area of Al-Kadhimiya Shrine, in 2009, considering these projects as a clear indication of the recent local approach in dealing with traditional urban configuration. The research reveals a relationship between the type of the traditional urban configuration’s Form-Moral Values bond, and the type of procedures used for it, which could form a vital type of traditional Arab city urban configuration, that keeps the essential characteristics, and in the meantime, responds to the recent demands of the society.