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This paper presents an analysis of an environmental conflict that arose in a Thai industrial zone. The authors analyse state policies to resolve the conflict, and draw lessons for other industrializing nations adopting industrial zone models. The study revealed that a root cause of the conflict was violation of land-use planning regulations and expansion of the industrial zone into community areas. Through legal action, civil society successfully forced the state and industries to halt unplanned expansion. However, inadequate commitment by the state and industry stakeholders seems to perpetuate the conflict. A Geographic Information Systems (GIS)-based analysis confirmed that the state policy interventions did not produce significant results. This paper highlights the need for GIS-based environmental quality monitoring to guide industrialization-based urban development towards sustainability.