Eco-towns in Japan were developed in the last 10 years by utilizing regional technology and industry in Japan. Local governments and enterprises have worked in partnership to build such complexes. Eco-towns have enabled a number of developmental objectives to be met simultaneously. It has helped to stimulate the local economy, secure employment, as well as dispose waste in an environmentally sound manner, and protect air and water resources. A number of lessons have been learnt in the setting up of such eco towns in Japan, not only within these eco-towns, but also on the cities where they are located. This report focuses on identifying the key lessons learnt in the setting up of the eco-towns. These lessons will help in the development of step-by-step guidelines that will help local / national governments to set up eco-towns in their countries. The report was produced by the Global Environment Centre Foundation with inputs from IETC.