China has seen rapid economic development and urbanization, and this has included the upgrading of traditional sanitation systems. But the speed of this transition raises concerns about the coexistence of diverging sanitation practices and their impact. This paper asks how this coexistence is experienced by low-income urban residents in Shanghai. It is based on field research during four weeks in July 2013, which involved in-depth, open-ended interviews with 20 low-income urban residents. The article concludes that these diverging everyday practices are situated at the core of urban socio-spatial differentiation, inequality, exclusion and discrimination. Particularly affected are rural-to-urban migrants and ageing working-class residents, for whom the lack of access to improved sanitation may be associated with stigmatization and social isolation. Future research should examine how changing sanitation cultures under urban development and diverging sanitation practices in different contexts can affect family ties, social relations and socio-spatial integration. To view an animated video that illustrates the ideas discussed in this paper, please visit https://youtu.be/BPEU_apfoLo </jats:p