The separation of functions has been criticized as deteriorating the quality of urban life. After World War II many industrial estates have been developed where industry could develop without disturbing housing and its environment. Over the past decades these areas have become enclosed by the city and a shift from industry to business can be noticed. Now, compact-city policies stimulate municipalities to look for different functions for inner-city business parks. Nevertheless, some of the industrial enterprises are still present, causing nuisance for adjacent city parts and forming obstacles for redevelopment. Local governments are looking for strategies and instruments to redevelop these sites. One of the options is introducing housing on obsolete inner-city business parks that have a lack of occupancy at a time that there are still industrial functions left behind that do not have a positive contribution to housing conditions. Projecting housing programmes on these sites are meant to make them come to life again, but introducing housing on business parks may also lead to environmental problems, such as noise, danger of activities and traffic. Based on the case studies of Binckhorst and Plaspoelpolder (The Hague region) and Buiksloterham (Amsterdam), this paper explores and reviews the compact-city policy and focuses on strategies used by municipalities for the redevelopment of inner-city business parks.