In the past, teh sitting of industries had received very scant consideration in planning particularly so due to the emphasis on economic factors and the need to woo foreign investors. As such the norm was indiscrimonate siting of factories along river systems where ready made sewerage system was available and also near to populated areas providing a steady supply of labour. This form of siting purely considered economic factors (taht is cost, labour, capital, transport cost and access) ignoring the fact that such siting exposed the river systems and the immediate environment to the dangers of industrial pollution. The industrial area at Jalan Kilang, Malacca is one such example. Though comprising of only twenty eight acres, it has caused problems such as traffic congestion, air and water pollution and the degradation of aesthetic value of the area affecting the environment, people and the town. Ir is only lately that some measures are thought of to oversome this situation and the most likely step is to re-site the whole area to a amore suitable location. This project is an attempt to achieve this. Various alternative sites recommended were evaluated using the potential surface technique and with this it is found that Malim Jaya is teh most suitable site for two types of industries - workshop and engineering works and General type A and B; wheraeas the site at Air Keroh is suitable for special type of industries. With the use of the Goal Achievement Matrix, two alternative concepts were evaluated and the outcome was that a sectoral-based one was applied in rpoducing the layout plan. In this layout plan, the Malim Jaya industrial area id divided into the various zones, each located accoridng to their compatibility with the others. Green areas as separation zones are perominent here to ensure the surrounding is unhampered by the effects of teh pollution emmitted. A central area equiped with eating stallas and recreational facilities is suggested. These are aimed at providing a better working condition. However, the implementation of this project is no easy task and participation from both the government and the companies inveloved is paramount. A number of incentives are proposed to ensure the success of this project.