The changing process of physical and social structure of Eski Foça settlement is investigated in order to expose the impact of the national policies over the urban development of the settlement and the role of legal and institutional frame of city planning relating to the orientation of physical development, within this study. The problems experienced in urban environment are described with a study that beginning from the national scale and focusing on settlement scale. In this respect, firstly the general characteristics and historical development of the settlement is examined. Particularly, the developments happening within the 20th century are studied concerning to the national policies, city planning and Eski Foça settlement including the inhabitants opinions. The problems relating to the physical structure, authorised and effectual institutions, social life are determined. At the evaluation grade of the investigations and determined problems, the deficiencies and conflicts relating to the urban environment glance of central government and existing planning comprehension and institutional structure in particular of Eski Foça settlement are exposed. Finally, a new planning approach and organisation model ascending from the local dynamics and extended to the national scale is put forward.