This paper explores the development of perspectives in small towns using the example of the town of Jastrebarsko, which is studied through social, economic and environmental dimensions, selected as basic indicators of development opportunities in a specific area. The theoretical basic of the paper begins with the definition of the city and the history of its origin, then the processes of influencing the transformation of cities with emphasis on urbanization as the main process of space change and development and "Smart" and sustainable city as a potential way of functioning. Also, the specifics of small and medium-sized towns are briefly elaborated and at the end of the theoretical part, the town of Jastrebarsko is presented through its way of functioning and certain specifics. In the empirical part, a qualitative methodology was used, primarily interviews and content analysis of two selected documents. The interviews are semi-structured type, conducted individually (face-to-face) during July and August of 2020, on a deliberately selected sample of eight participants. In addition to six citizens, two experts administration employees of the city of Jastrebarsko were interviewed, in order not only from the perspective of citizens, but also from the perspective of those who manage the city. Finally, the views of the participants on the possibilities of future development in the town of Jastrebarsko were explored and the conclusions of the overall work were stated. One of the potential direction of future work is to investigate in more details the ways to emphasize life in smaller cities while maintaining and preserving the natural and cultural heritage of the city.