The Blauwe Stad was initiated to generate a new economic boost to East-Groningen, a shrinking region in the Netherlands. The transformation of agricultural land into a new residential and commercial development at the water’s edge was achieved by creating an ecological, multi-use living environment. 

Situation

• East Groningens is a largely monofunctional agricultural area in the periphery of the Netherlands and is traditionally well known for its grain. However, the mechanization of the agricultural industry caused massive reductions in employment. 
• This technological shift, but also the shift towards a more knowledgable service based economy, led to the permanent shrinkage of population. This caused significant problems with economic stability.

Objectives

• The aim was to diversify the regional economy by installing new leisure-based economic activities and attracting affluent and skilled people to venture to The Blauwe Stad from the western part of the country.
• Increase the value of existing land which as at a serious disadvantage from the quality of the soil.

Assets

• The 1.350 hectares of farmland available had problems with the waterlevel and the quality of the soil.The value of the land could only increase.
• The site had an ideal smooth curved form which made the creation of a lake possible.

Strategy

• Transforming the land into a new landscape which consists of the main element, a large artificial lake.
• Stimulating economic activity by attracting people and investments to move from more wealthy regions in The Netherlands and Germany, to the province of Groningen. 
• Providing unique living environments for The Netherlands by offering large, water-orientated plots with a high level of freedom and choice of building. 
• All houses were to be built with ecological and recreational facilities.

Actions

• 800 hectares was flooded with an average depth of 1.30 meters to create the lake. The lake was the identity and the spatial theme of the new area.
• 350 hectare was made ready to construct a nature reserve. Initial plans were aimed at 1470 exclusive dwellings. 
• A wide spread campaign initiated to advertise the project.

Effect

• Poor sales of plots and some negative publicity surrounding The Blauwe Stad had a huge impact on the organization. Three private construction companies left the consortium leaving 3 municipalities and the province of Groningen behind.
• After the community reform, the three municipalites turned into one and created a new identity. The province and municipalities are currently at a severe disadvantage to invest in other projects.
• Adjacent villages benefited economically due to tourism. 
• The economic model of Blauwe Stad is now considered a long-term process. The hope is that patience and time will help the economic strategy of ‘Blauwe Stad’ for a longer period of time.
• The Blauwe Stad has become an example for the need to plan and design rural development differently. 
• By 2006, the Dutch housing market had slowed down. This had a significant influence on the influx of new inhabitants to the area.