The Wall Street Journal

Ana Campoy

SACRAMENTO, Calif. -- Gasoline was less than $2 a gallon when Mike McKeever brought his gospel of bikes, light rail and tightly packed neighborhoods to this state synonymous with cars, freeways and suburban sprawl.

"The development industry was very concerned," says Mr. McKeever, head of Sacramento's regional planning agency. "The environmental community was openly negative," concerned that it was "just more talk, talk."

Seven years later, with gasoline hurtling past $4 a gallon, Sacramento has become one of the nation's most-watched experiments in whether urban planning can help solve everything from high fuel prices to the housing bust to global warming.

"They're really the model," says Steve Winkelman, a transportation expert at the Center for Clean Air Policy.

For decades, backers of "smart-growth" planning principles have preached the benefit of clustering the places where people live more closely with the businesses where they work and shop. Less travel would mean less fuel consumption and less air pollution. Several communities built from scratch upon those principles, such as Celebration in Florida, sprouted across the country. But they were often isolated experiments, connected to their surroundings mainly by car. So, as gasoline remained cheap, the rest of the country continued its inexorable march toward bigger houses and longer commutes.

Now, smart-growth fans see a chance to reverse that.

"Expensive oil is going to transform the American culture as radically as cheap oil did," predicts David Mogavero, a Sacramento-based architect and smart-growth proponent.

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