Based on the planning in 1990 and the opportunity to host the Olympic Games in Stockholm 2004, an overall cooperation began between the City of Stockholm, the Nacka Municipality, the National Road Administration, Stockholm Transport (SL), the Office of Regional Planning and Urban Transportation (Hammarby Sjostad was proposed as Olympic village) Hammaby Sjostad project will expand the inner city naturally with a focus on the water, integrating the historical industrial and harbor area into a modern, ecological new town with elegant environment and architectural art. The project occupies 145 hectares and wilt be fully finished by 2015, with about 10000 residential units and a total of 30000 people living or working in this area. At present, almost 10000 people live here, including 7000 in the south.

Though Hammarby Sjostad lies in the periphery of inner city in Stockholm, its space form down t continue the existing suburb pattern, but the block structure of old city center, which results in a semi-open part of town area made up of a traditional close-knit inner city and a more open and airy contemporary urban zones.