This chapter explores through a case study in Pakistan why, in the cities of developing countries, resident communities are so commonly subject to environmental nuisance from nearby industry.

Approaching from the framework of state, market and community, we can model the problem as a cascade of means by which nuisance might be abated:

• If the state regulators were functioning effectively, the problem would not arise because the town planning regime would segregate sources of nuisance from sensitive land uses, and because the environmental protection regime would largely prevent the sources of nuisance arising even where the land uses were not segregated.