Covering 116.6 square kilometers in the southwest of Lin-gang Special Area, Haiwan special functional area lies east of Jinhui Port, south of S3 Shanghai-Fengxian Expressway-Lianggang Avenue, and west of Zhonggang.

Haiwan special functional area plans to create three functional areas - Xinghuo industrial area, a coastal tourism area, and a residential area, as well as Liaoyuan community and Wusi community. Xinghuo industrial area will be dedicated to developing the biomedical industry, and will cooperate with the coastal tourism area in medical care and rehabilitation. Endowed with ocean resources, the coastal tourism area will organize sports events to create a brand for vacations and tourism. The residential area will focus on improving public facilities to meet the production and living needs of Haiwan, transform road networks in the industrial area and increase branch road density to enhance efficiency and quality. 

It also plans to build a greenway network in scenic spots, and protect Shanghai Haiwan National Forest Park to form an ecological coast with forests, ocean and diversified habitats. It will focus on ecological restoration, upgrading functions and creating woodland landscapes to implement habitat restoration, and retain natural villages along the northwestern area of Liaoyuan, Xinhuhang Highway and S3 Hufeng Expressway to encourage farmers to move into buildings.