On the south of Stockholm, there lies a magical waterfront district of Hammarby Sjöstad. Around the lake of Hammarby Sjö a run-down port and industrial area has been cleaned up, developed and converted into a modern, eco-friendly and fully sustainable district – it provides for its own energy supply, water and wastewater treatment as well as waste management.

They removed the old transport barriers and closed down (or demolished) industrial and terminal sites only to give them a new life and a new purpose - for example, a former industrial facility now houses a library and various offices. The housing projects predicts building 11,000 apartments, once completed, that will give home to approximately 35,000 residents. About half of the apartments are intended for tenancy and the other half for tenant ownership.

All materials that were used for constrution were "proven, sustainable materials and products with environmental declarations". Developers really aimed at avoiding chemical products or building materials containing hazardous substances at all cost.

According to plans, the residents will produce half of the entire energy required to function normally by themselves. They will concentrate on "renewable fuels, re-use of waste heat, biogas and household energy efficiency." Sustainable heat supply will be available from various sources, for example, the Hammarby thermal plant, which recovers waste heat from treated wastewater piped from the Henriksdal sewage treatment plant.

Most of the residents use convenient bike lanes as well as ferry, bus and tram links, so they can commute in and around the neighbourhood without having to use environment-polluting automobiles. Within Stockholm's largest urban project to date, the green, sporty spirit of the area is also showcased by the fact they created numerous new green spaces, such as parks, for outdoor activities, making this residential area even more appealing.