Nagan walled town is located on an axis connecting symbolic places, which is a lucky place from the Fengshui point of view because a mountain sits to the rear and a body of water sits to the front. It represents the environmental development of cultural space by blending folk belief, religion, social systems, adminstration facilities and living culture buildings. Therefore, it has a sustainable cultural view connected with a formed or formless religious view and an artificial view (walls, government buildings, living houses, cultivated lands, etc.) in a natural landscape. Environmental design techniques, enlarging the meaning and value of living on a mental level, can be found in the arrangement of space composition and settlement of Nagan walled town. The organised spaces of government and residential areas were constructed within the wall with the view of searching for lucky places (from best, better and good places) in order to construct ecological networks according to the outlooks of space and settlement.