This thesis seeks to explore the concept of Circular Economy and its integration into urban planning as a tool of implementation. The goal of this thesis is to develop environmentally sustainable cities. To develop environmentally sustainable cities, the thesis focuses on two major resource flows in the city: food and water, whose waste streams and high demand are causing damage to the environment. The thesis has developed regional strategies for both the resource flows in decentralized systems and centralized systems. It has emphasized the integration of socio-ecological systems and socio-technical systems that are required in order to successfully implement a circular economy in developing countries. The strategies and the spatial design are elaborated in two pilot projects which have different challenges.