Environmental problems such as air pollution, noise pollution, water pollution and congestion, are becoming critical across the globe. To overcome many problems related to urbanization including the environmental concern in many developed and developing countries, one essential tool is zoning. This study estimated the impact of zoning on congestion, air pollution, noise pollution, waste management, land values, greenery and plantation and access to safe drinking water in Islamabad. Besides, the environmental behavior, welfare gains and loss of the residents due to zoning are also analyzed. For this study, a sample of 266 households from Islamabad was used and analyzed through descriptive statistics. The main findings of the study revealed that central sectors of Islamabad qualified the zoning regulations while Bharakahu doesn‟t. Zoning has a negative impact on the congestion, air pollution, noise pollution, waste management and positive impact on the water availability, greenery and plantation, land values, environmental behavior of the residents. The residents of zoned area get higher welfare gains as compared to the residents of non-zoned area. In non-zoned area, there is lack of provision of basic amenities. It is recommended that, in non-zoned area, there should be provision of all necessities and the future developing areas should be made according to zoning regulations. Supervisor:- Dr. Anwar Hussain