Virtual reality is one of the most developing parts of computer science and engineering. It has opened the door of new possibilities in the field of computer science and engineering. It is also currently being examined for practical use in various industrial fields. One contribution of this paper is that it provides a real example of virtual reality in industrial applications which may encourage the scientists to develop virtual reality model. The paper also discusses shortly about the current use of virtual reality tools, their uses in various sectors of science and engineering and proposes theoretically an application of virtual reality system for developing residential area. One programming language, virtual reality modeling language is presented in development of computer visualization tools for the system. By using high resolution display, three dimension computer graphics, and interactive device, a virtual world can be realized in which imaginary objects created by VRML can be picked up as if they are in real world.