This graduate work was created as a continuation of the project carried out in 2018 as part of the Interreg V-A Hungary-Croatia cooperation program, which focuses on the smart and sustainable development of the area around the Hungarian-Croatian border, while strengthening and expanding existing cooperation networks and contributing to the establishment of a solid foundation for a dynamic and long-term cross-border cooperation. Workshops, presentations and photos collected in the field as part of the Interreg program were used as an idea and basis for the creation of the work below. Apart from the introductory and concluding parts, the work itself consists of seven more chapters. In the first part, in which I classify the first two chapters of the paper, it is theoretically processed what the terms smart city, integrated development and what principles and methodologies were used during the preparation of the paper. The fourth and fifth chapters talk about what are the basic capitals on the basis of which a town or city can develop sustainably, and what are the conditions, principles and rules for the sustainable development of an urban area. This concludes the theoretical part of the paper. The penultimate and last chapters deal with the concrete application of everything mentioned in the theoretical part on the example of the town of Ludbreg. First, some geographical, historical and economic features of the city are discussed. Then the resources and capital that Ludbreg owns were processed. After that, a proposal was made to improve the quality of life. The blue capital - water and water elements within the scope of the intervention - is treated in more detail. Given that four years have passed since the beginning of the Interreg project, some elements proposed in the works were implemented in the square that was the subject of the project, so at the end of the work, photos of the actual condition at the time of completion of the work are attached.