In developing countries, urbanisation has been synonymous with industrialisation where the growth of
industries offers job opportunities and incentives for economic development, urban settlements and
rapid housing expansions. In Malaysia, the lack of usable land for urban development means that a
proportion of the housing estates may have to nestle within industrial establishments. Industrial
activities often cause environmental problems such as poor air quality, local temperature increase,
excessive noise levels, which in turn affect the natural environment, health and quality of life in these
residentialindustrial areas. This chapter reports the development processes of a research aimed at
applying sustainability principles in housing development specific to a Malaysian residential–industrial
neighbourhood by drawing experiences from exemplar projects in Australia and comparing them with
the development needs under local Malaysia conditions, through a case study in a city of Johor,
Malaysia. It responds to the lack of environmental policies for housing development in residentialindustrial areas in Malaysia. The ongoing development of this research will eventually lead to designs
and construction approaches specific to the needs of the local residents and guidelines for promoting
smart and sustainable living in these residential-industrial areas.