City environment is in constant development and community always has a need for high quality city environment. Different actors like local authorities, monument protectors and local inhabitants have different view on high quality city environment. Nevertheless high quality city environment is a factor that establishes wish of people to live in some special place. Cultural heritage is one of the factors that establishes high quality city environment – it is created in harmony with the local environment, landscape, is shaped in a scale recognizable for people and shows the total amount of long term values of the whole society. The task of cultural heritage is to improve living standards and to encourage sustainability. Regulations, plans, concepts etc., are means to achieve this task. Preservation of identity of environment supports diversities of cultures and is a great help for some regions not to blend in a homogeneous mass, therefore the protection of cultural heritage has a great importance. Every district of Latvia has its own values and peculiarities that make them different. Learning, renewing and preserving objects and characteristic landscapes, is carried out for the maintenance of Kuldiga cultural identity. In order to give theoretical background for planning of preservation policy and specific actions where factors that influence development of city environment and interests of community are taken into consideration, principles of historic environment, preservation of objects and development as well as mechanisms to achieve it, are defined in this work. The environment is changing and in order to understand city values and possibilities to maintain them, the history and development of the city have been researched in the context of urban building. The historic center of Kuldiga has been analyzed by researching preconditions of geographical position and nature conditions, historic processes of city development, the local community and legal regulations. The role of cultural heritage in development of high quality city environment has been established in the promotion work, our day international experience in the field of preservation and protection of cultural heritage has been researched and the ways to apply it for Kuldiga. Perspectives of development of Kuldiga historic center have been established, the main values of Kuldiga historic center and suggestions for their preservation have been defined, as well as establishing ways to explain, promote, maintain these values and how to keep them according to the present standards. Theoretical and empirical methods have been used in this research. Analyses of real examples and choice of pictures is based on research of Kuldiga historic center, experience of foreign cities and experience of the author in her everyday work when working as an Architect of Kuldiga as well as on discussions with Latvian and foreign specialists on cultural heritage. It is possible to use these research results in defining and promoting values of Kuldiga historic center, when working out regulations as well as in supervising the heritage and carrying out preservation policy.