Natural environment of the Baltic seashore became a dwelling place for the people who settled there. A new functional environment was established by changing water and greenery systems and by creating architectural structures. The first towns in Latvia were set up in the 13th and 14th centuries. Design and structural layout of building was affected by presence of the hydrological basin – the sea, rivers and lakes, as well as masses of plantations. Planning composition of settlements was formed according to the characteristics of the relief – lowlands and hills, and other natural elements. On 18 November 1918, the independent Latvian Republic was proclaimed. Approach to urban development changed. Nature elements began to be included in the architectonic spatial structure of the cities. Pieces of art enriched the cultural environment. Synthesis of nature and art create harmonious environment and contribute to development of diverse planning and spatial compositions and their originality in Latvian cities. Sculptural works have enriched the coastal landscape of the Baltic Sea in Liepāja, the river and lake sceneries in Cēsis, Talsi and plantation structures in Baldone, Līgatne, giving artistic expressiveness and identity to the urban environment. The harmonious environment in Latvian cities, created by interaction of nature and art, can enrich our experience in creativity to find new and innovative solutions to urban development.