The project is performed in the light of urban sustainability. Urban sustainability is defined on the principals of a balance between environment, social and economic aspects. The focus is placed on incorporating high density and neighbourhood structures in the transformation of a central city area. The chosen case area lies in Katrinebjerg, Århus, and has previously functioned as an industrial area. In the report, we therefore analyse theories about density and neighbourhoods as a way of giving overall directions for sustainable planning and design. The theory has been used to provide a focus within the area of sustainability, and functions as a frame for the intentions and considerations made later in the design phase of the project. With Katrinebjerg as the focus, a conceptual master plan is made to reflect the key principals of density and neighbourhoods.