This study considers the process of regional Re-Birth against the depopulation of Teshima, located in the Seto Inland Sea (Tonosho-town, Shodo-district, Kagawa Prefecture). The island was the subject of a scandal with largest illegal industrial waste since the 1970s. Now, the industrial waste issue on the island is mainly removed the ART SETOUCHI, art festival, attracted 150,000 visitors in 2016, and is held once every three years. The study focuses on the effects of ART SETOUCHI (Contemporary art festival) and the regional characteristics (especially focusing on local foods). Based on these two key characteristics, the structure model of Re-Birth aimed CSV, that is, balancing economic value and social value by Value Co-Creation among various actors centered on Local residents and New residents. In this study, Value Co-Creation defines value recognition by Local residents and New residents, based on the concept of value co-creation (4C's approach) by Muramatsu (2015) , S-D-Logic by Vargo and Lush (2004) and S-Logic by Grönroos (2006). This study explores not only the structure model of Re-Birth, but also how to adapt the model even in such harsh environmental areas, like Fukushima, suffering with depopulation, aging, and reputational damage. We see that, Regional Re-Birth means, the story that Local residents and New residents aim to establish the self-government system to have initiatives against the negative state refined as polluted land. At such time, independent, self-reliance, and self-consideration are important factors as condition of Value Co-Creation.