This paper investigates the factors influencing the integration of sustainability principles into policy-making in developing and emerging economies using case studies from local and state government sectors in Malaysia and Bangladesh. In particular, it considers the evolution of a public-private partnership approach for the improvement of urban sustainability with a particular focus on housing, waste management and urban development. The findings of this paper provides useful evidence of the implications of a public private partnership approach that can help government policy-makers, businesses and NGOs in formulating and implementing sustainable policies in urban environmental infrastructure and development in developing economies.