Part of a series of four entitled Urban Patterns for a Green Economy, this guide explores the compact city and its benefits within the developed and developing world’s contexts. The guide illustrates 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, compaction can positively enhance the life of the city dweller and support related strategies aimed at promoting a green economy and sustainable urban settlements.