Krajan Kampung, Krian - Sidoarjo is one of the settlement areas affected by the development of the surrounding area, mainly due to its proximity to the center of activity and trade services in Krian District. In addition, these areas are also affected by industrial activities that provide employment opportunities. These settlements have the potential to develop into densely populated areas and degraded the quality of settlement that tends to be slum. This paper aims to find out the concept of settlement area based on sustainable development. This research is conducted by field observation-case study method that is descriptive, in accordance with aspects of sustainable development. The implementation of Sustainable Housing concept in Krajan Kampung consists of environmental, economic, social and cultural aspects. Handling on environmental aspects involves the provision and improvement of basic infrastructure of settlements. The economic aspect covers the arrangement of street vendors, skills training, and the formation of creative economy groups. The social aspect consists of improving community participation in village development and optimization of available facilities. While the cultural aspect, consists of the development of villages that are able to accommodate the concept of mutual cooperation and the preservation of local cultural values.