The formulation and implementation of sustainability in policy-making is an enormous challenge for both public and private sectors in developing and emerging economies. Policy-makers in these economies face particular challenges because they have so many economic, social and environmental priorities at stake that it becomes difficult to decide which projects should be targeted and funded to achieve the greatest benefits. 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 between government (at different levels), businesses and NGOs for the improvement of urban sustainability with a particular focus on the housing and urban waste management sectors. 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 the developing and transition economies.