population exceeding 10.000, it has historically had a larger center than Nevşehir. An important part of the population consisted of Anatolian Greeks, before the population exchange between Greece and Turkey in 1923. Today, the population (14.502 in 2000) consists mostly of young people, with 900 students enrolled in seven primary schools and three high schools, among them a vocational school for girls. The lively cultural and social scene of the city hosts a sizeable library, a city museum and regular festivals including the Cappadocia Film Festival. The Municipality is also a member of the Turkish Association of Historic Towns and Regions and an active follower of the Local Agenda 21, which was adopted in June 1992 during the United Nations Conference on Environment and Development – the global action plan for sustainable development for the 21st century. After the introduction of tourism in the region in the 1970s, a significant population growth occurred, and the livelihood of the majority of the local people became tourism, along with traditional agricultural activities. Ürgüp is an important destination both for Turkish and foreign tourists, who mostly come for day trips between March and November. Its position within the sector is still improving, with many hotels and pensions in the city, comprising a bed capacity of about 1.000; with the Kayakapi Project, this number is expected to double. The main economic activities in Ürgüp involve trade based on tourism, marble souvenir workshops, carpet weaving, and agricultural products. Wine, molasses and marmalade are produced from the expanses of vineyards and orchards. Industrial products, which are not very developed, include cement raw material and pumice stone. Background of Project Development Following the announcement of a ministerial decree, Ürgüp district was declared a ‘Tourism Development Area’, in 23.2.1973 (no. 7/ 5811). This ushered the period of tourism boom for Cappadocia. More specific planning works undertaken for Ürgüp and environs include a Master Development Plan on 1/5.000 scale and an Implementation Plan on 1/1.000 scale approved in 1976, followed by an Environmental Organization Plan on 1/25.000 scale and an Addition and Revision Plan on 1/1.000 scale approved in 1999. Within these plans, the Kayakapi Neighbourhood carried the status of a ‘natural site’, until recently, thus staying untouched by nearby modern urban development. The idea to undertake a study in Kayakapi such as the Kayakapi Project started in 2000 after the concern of the municipality of Ürgüp was raised