Particularly industrial agglomerations in newly§industrialising countries come along with highly§concentrated, negative impacts on environment and§society. Industries urgently need to§rethink their strategies not least to sustain their§economic performance. How§can industrial areas in general and industrial§estates in particular contribute to a sustainable§development in theory and practice? The author§introductorily provides information on sustainable§and industrial development, how these two relate,§existing§concepts and implications for the industrial sector§in general and industrial estates in particular. On§this basis one industrial estate in central Java,§Indonesia is analysed in a participatory approach by§applying one of the instruments introduced. The§results are discussed in detail,§future scenarios and recommendations derived.§The paper addresses primarily practitioners working§in the field of industrial area management and§development in newly industrialising countries, both§proactive and supportive.