This article critically reviews the evolution of urban environmental management in Shanghai since 1978. Established in a transitional post-socialist economy and shaped by a spectacular urban redevelopment process, the current environmental management framework of Shanghai has succeeded in mitigating major industrial pollution and improving urban amenities with unprecedented pace and magnitude. However, it generally failed to take social equity and environmental justice issues into consideration. Based on Haughton's models of sustainable urban development, this article proposes four priorities and five principles within the framework of a fair shares cities model for the future environmental management of Shanghai and briefly discusses their policy implications and implementation issues. The authors argue that Haughton's approach is relevant to Shanghai's case because the essence of his argument-the multidimensional equity principles-is the core of the concept of sustainable development.