Many complex factors influence the sustainability of urban forms and patterns. The scale at which such forms and patterns occur is crucially important when responding to urban challenges in pursuit of sustainability. In support of the “green economy”, the concept of the compact city is presented here as a key part of achieving sustainable settlements and green growth.25 Urban compaction is not a magic bullet. Creating compact, integrated, and liveable cities that support the “green economy” is one part of the solution to achieving sustainable settlements. Re-planning and re-developing already dense informal and dilapidated areas can also bring real economic, social and environmental benefits, especially in developing countries. To foster sustainable urban settlements governments face the challenge of directing urban growth patterns in a manner that will work with broader strategies aimed at greening the economy and underpinning sustainable development.

This guide shows how the compact city concept and planned (versus unplanned) urban extension can support sustainable urban patterns that benefit the functioning of developed as well as developing world cities. Properly managed and appropriately applied, compaction efforts can positively enhance the life of the city dweller and support related strategies aimed at promoting a green economy and sustainable urban settlements.