Historical settlements, which are integral parts of the cultural heritage, should be documented and evaluated with their local characteristics. The aim of this study is to document, analyze and evaluate the architectural, environmental and social characteristics of an urban settlement called Değirmendağı District, which has a historical background beginning with the Roman period to the present, in the center of metropolitan city of İzmir, on the Aegean coast of Turkey. The settlement is one of the earliest that was planned by local administration in İzmir and contributes to the İzmir silhouette with its location on a steep hillside in the township of Konak. Documentation methods used are sketches, photography and architectural and social questionnaires. Inventory cards were prepared to collect architectural characteristics of each building and the social questionnaires were comprised of socio–economic characteristics of the settlers. Data gathered at the site was analyzed and evaluated to develop a conservation approach, including historical review of the ancient era. Since the area is easily accessible and close to city center, the area becomes attractive. It has the advantage of the vista based on its inclined topography and grid-planned scheme. Değirmendağı District is a special area requiring special conservation within the city of İzmir. However, historical pattern has changed through the years because of changing lifestyle. The area, which is one of the most important and valuable districts in İzmir considering its history, location, and architectural characteristics should be integrated with the city and citizens. This study documents the present potentials and values of the area and forms a basis to prepare conservation approaches.