Mixed land use has many potential advantages. Mixing land uses allows businesses to be more flexible in finding the most suitable locations, thereby promoting economic growth. Mixed land use can enable reduction in mileage traveled, since people can use services close to their home and place of work. It may also encourage shorter, non-motorized trips and resulting unstructured encounters, which is the greatest relative advantage cities have to offer, thereby contributing to urban revitalization. However, mixed land use can also expose urban populations to environmental degradation, which may deteriorate as densities increase. The current Israeli planning doctrine has favored urban crowding; however success of this strategy is largely contingent upon maintaining the residents’ quality of life and the quality of the urban environment. Thus, the main dilemma presently facing urban planners is how to encourage a mixture of activities and offer businesses maximum flexibility in finding their optimum locations, while at the same time ensuring good access without jeopardizing environmental quality. The current method of classifying land use in local outline plans prevents mixed land use. This report presents a new method for classifying urban activities, based on transportation and environmental considerations, so as to allow mixed uses, ensuring good access to all activity types without generating unacceptable environmental degradation.. The principle underlying the proposed classification method is that each activity will be provided with as broad a range of locations as possible, within transportation and environmental limitations.