The increase in population and demand for settlement facilities and infrastructure affects the attractiveness of Batu city (Indonesia) and has a significant impact on the environmentWe perform spatial mapping of the environmental carrying capacity in developing settlements using the overlay-geoprocessing method. This method is based on unit indicators such as slope, morthology, soil type, elevation, and potential for disasters for obtaining the data on land capability, land suitability, and settlement development plans. Land capability analysis shows that slope, morthology and altitude are the main factors for attributing moderate, low, and poor development capability. The land capability unit shows the areas with slope steepness and land morthology that are not appropriate for intensively developing areas. Batu City areas of moderate, low, and poor development capacity cover 13,365.14 ha, 3193.04 ha, and 2858.07 ha. We also demonstrate that there is about 2,363 ha of unsuitable land use with poor land capability and 3,784.28 ha of land can be developed for settlement. Using this approach we determine saturation point in the residential area plan, because the environmental impact will increase if no threshold is given for residential development.