Abstract: At the current stage of social development, human life becomes increasingly interlinked with the cities. Cities play a significant role in history, especially in the history of culture, Cities and culture are inseparable concepts, having such close relation that comprise an entire object of cognition. Namely these factors bestow individuality and adaptiveness upon urban environment. Space opens more opportunities for communication, exchange of experience and running social campaigns. Therefore, the conditions for existence of a new cultural environment are associated not only with changes in the created design solutions and/or aesthetic trends. Based on the method of comparative analysis, the author examines the concept of “cultural environment of a city” and its impact upon arrangement of public space. The novelty of this study consists in the thesis that the efficiency of organization of the urban cultural environment affects development potential of the cities in their social and economic unity, with focus on the degree of population content with the quality of life. Cultural environment also impacts consumer culture and interests of the community, as well as contribute to the development of urban space.