Indonesians had lived a lifestyle in the past that was very harmonious with their environment. Almost all tribes and communities had policies for preserving and managing their surroundings based on local wisdom that was passed down from previous generations. However, due to the increase in the development of modern cities, this knowledge began to erode. Therefore, this study aims to analyze the impact of waterfront city development on coastal resources and local wisdom in relation to the preservation of sustainable environments in the archipelago city of Ternate. This study was performed through a literature review, field observations, and interviews with 250 respondents. The results show that the increase in waterfront development activities can reduce the potential of coastal resources as well as have an impact on changes in regional characteristics and features of local wisdom in coastal areas due to reclamation. The conservation of environmental resources and the management of coastal areas based on local wisdom and sustainable development can improve the value of the environment and reduce the pressure on coastal resources. The findings of this study can improve insight into the importance of sustainable waterfront development based on local wisdom, specifically in archipelagic cities.