One way of promoting sustainable development has been put forward by the Congress for New Urbanism through their Charter for Smart Growth. This paper explores the theory and practice of the transit-oriented development (TOD) concept developed in the USA by Peter Calthorpe in the late 1980s and early 1990s, which has been very influential. This paper then goes on to consider the practical lessons and challenges from an example of transit-oriented development at Laguna West, ivhich was built following Calthorpe's design approach, for proposed 'sustainable' developments in designated growth areas of Britain, such as Northstowe ouside Cambridge.