With the growing concern about energy and environment, smart grid has been proposed as a standard of future grid with high power quality, reliability, flexibility and efficient access to distributed generations (DG) and micro-grids. This paper presents the opportunities and advantages of VSC-based DC technology to improve future city distribution systems. Conventional CSC-HVDC technology is costly and not feasible in distribution network. Comparison between VSC technology and prevailing AC is analyzed in detail and DC distribution takes advantages both technically and economically. At last, a practical parallel DC-AC distribution system structure is presented.