Sustainable development requires the promulgation of guidelines for urban planning which consider the effects of the built environment on water resources. In this context, our paper focuses on the effects of urban development on the quantity and quality of rainwater which infiltrates into the soil on its way to recharge the aquifer. The paper includes: identification of the state of knowledge regarding the effect of urban development on runoff and infiltration; a case study-estimation of the effect of certain patterns of urban development in an Israeli neighbourhood,together with an option for mitigating them by relatively simple and inexpensive means; presentation of the components of urban planning which influence runoff and infiltration; and proposals for continuing research in this area which has been relatively neglected until recently.