This course aims to explore the development and structure of cities with economic and environmental principles. The discussion starts by explaining why cities exist with the concepts of agglomeration economies. Then, we investigate how spatial and geographical structure of economic activities are determined in cities through the introduction of the location choices model of households and firms. After that we embed environmental externalities and amenities into the location choice model and study the role of environment in shaping where households locate. Finally, we explore the set of urban systems used in contemporary cities and describe the changes that will be required in the transition to sustainability. Through taking this course, students are expected to learn various urban economics theories, which provide explanations to many contemporary urban and regional economic issues.