Many cities around the world are facing immense pressure due to the expediting growth rates in urban population levels. The notion of ‘smart cities’ has been proposed as a solution to enhance the sustainability of cities through effective urban management of governance, energy and transportation. The research presented herein examines the applicability of a mathematical framework to enhance the sustainability of decisions involved in zoning, land-use allocation and facility location within smart cities. In particular, a mathematical optimisation framework is proposed, which links through with other platforms in city settings, for optimising the zoning, land-use allocation, location of new buildings and the investment decisions made regarding infrastructure works in smart cities. Multiple objective functions are formulated to optimise social, economic and environmental considerations in the urban space. The impact on underlying traffic of location choices made for the newly introduced buildings is accounted for through optimised assignment of traffic to the underlying network. A case example on urban planning and infrastructure development within a smart city is used to demonstrate the applicability of the proposed method.