The aim of the article is to compare city planning sustainable development principles and development of the city ignoring these principles. In the article the term local identity is analysed, local identity is a very important requirement to provide sustainable development. As it can be observed in the municipalities, where the identity is not preserved, inhabitants try to develop new identity. As an example and the fact Dobele County is considered, where Pokaiņi Forest with the mystical qualities of sacred was suddenly discovered - it is actually an attempt to create a new identity. Kuldiga local identity to a large extent is determined by cultural and environmental impact on a set of values. Both Kuldiga municipality and Latvian residents recognize Kuldiga cultural heritage as municipality and even the Latvian identity fasteners. In Kuldiga the value of the historical centre is formed by a landscape, which remained on the human trail and plans to transform nature, and cultural objects belonging to various eras. In Kuldiga Old Town, mainly for economic reasons, cultural environment survived without significant loss of the original substance. A range of problems related to cultural heritage have been identified. Cultural heritage is one of sustainable urban development conditions, as well as its preservation and maintenance. Preservation of cultural values focuses on three main factors. These are the nature and weather, environment and people who affect the environment. Not just the owner, municipality or the state, but also the local population have to take care of cultural heritage, in order to appreciate its value and recognize the need for preservation and renewal