Primary purpose of this paper is to show how the regional structure of natural environment was integrated into planning and design of open spaces through the process of land development for collective housing in hilly areas of suburban districts. A case study was made in Tsurumai district of Nara City that was developed in mid 1960s. Extensive research in land formation process and its results based on the information generated by overlaying grading plans upon the original topography indicates the following points. (1) land formation in the housing site followed basic structure of the original micro topography and generated variety of land form which was identified as a fractal elements found in the regional structures of natural environment. (2) The variety of land forms provided spaces for parks, pedestrian spaces, parking lots and other public facilities, and altogether they support the entire system of spatial organization in the housing site. Also, by a comparative study of existing vegetation and those of the original planting plan, it was indicated that environmental stock represented by existing vegetation was developed mostly in the spaces generated by the land formation process in the site.
