The arrival of the Rautaruukki steelworks changed the entire life of the town beginning from the 1960s. The population began to grow rapidly with the building of the factory. Today the factory provides employment for over 3000 men and the multiplier impact on the economy is great.

The rapid increase in population created in fact a demolition threat for the old wooden town. The new town plan drawn up in the 1960s was for a strong new cnstruction. Special instructions were given concerning the most valuable entities, such as Pekkatori square, part of Rantakatu, and the church square. In accordance with the spirit of the times, the town plan presented long building complexes that would cover several plots. The proposal of these large complexes slowed down new construction. The active planning and land policy pursued by the town in new areas also relieved the pressure to construct. The town plan of the 1960s has, however, clearly left its mark on the wooden town of Raahe: one- and two-storey houses of bricks are found especially in Kauppakatu. Moreover, the old town is surrounded by a wall of block of flats in the north and east. The town plan of the 1960s required the transfer of almost all services to the new centre, which is the area under new construction to the south side of Koulukatu.

The preservation of the old town of Raahe was decided in 1977. The area consists of 150 old houses and about 200 outbuildings. After the preservation decision, about a hundred main buildings have been renovated in the area. 30 new buildings and enlargements have been made fitting in with the environment.

The new town plan makes it possible to maintain services in the old town. An attempt is being made to preserve most of the buildings by means of renovation and enlargement measures. Replacing the old by constructing new is permitted in some cases. Complementary new construction will be allocated to several plots. What is important in all the building activity, both in renovating and in constructing new, is to respect the old and adjust the new to the milieu as its natural part.

Old Raahe is not an open air museum, but a living part of the town. It tells about the history of construction and living in the town from across the centuries up to present.