This chapter evaluates the completed new town policy in Dutch physical planning and describes the new compact city policy. After the Second World War, the Netherlands had to cope with large population growth and an even greater shortage of housing. The compact city policy has to be understood as a reaction to the new town policy which had to be corrected: new towns were functioning as dormitory towns, there was urban decline, increasing commuting distances and increasing mobility by private car leading to environmental problems. The compact city approach was also a reaction to increasing international competition the collapse of Eastern Europe and in an integrating European Community. The compact city concept sought to end the population loss of cities in favour of suburban locations. The new town policy concentrated on preventing the growth of settlements other than the designated new towns and on keeping the Green Heart free from suburbanization.