Function is the basic attribute of villages and the buildings, and is also the basic guidance for the protection and development. The functions have become multi-dimensional and complex as era changes, and the changes of functions inevitably result in the initiative adaptation and the adjustment of buildings and the environment space. It is an original perspective for the research on the interactions between the functions and spaces of traditional villages, also for the analysis on the development of traditional villages, to explain the social and cultural phenomena on the aspects of space introducing the method of functionalism. In this paper, the important buildings and the environment spaces are divided into four types, taking a case study in a traditional village in the south of Zhejiang Province in China. This paper puts forward the basic guidance that village protection and development must be combined with the functions of living, environment, tourism and historical culture and meets the multi-demands of the tourists by improving the human habitation quality, protecting the traditional scenes and integrating the historical cultures and landscape spatial structure.