The period between the two world wars for Istria represents a time frame in which the foundations were laid for some of today's larger and significant cities on the peninsula. With the annexation of Istria to the Kingdom of Italy, a period of investment in the economy and infrastructure began. As a result of such capital investments, two new towns were built – Raša (Italian: Arsia) and Podlabin (Italian: Pozzo Littorio d'Arsia), which were historically and economically planned as part of an agglomeration for mining. The aim of this thesis is to address the planning and construction of Podlabin, which today forms an integral part of the urban area of Labin, and to connect historical facts within the framework of economic, sociological, and political factors that led to its construction. In terms of urban planning, the goal is to adequately analyze the project solution and quantify the quality of the solution, while in terms of sociological factors, it is important to connect the facts that influenced the spatial planning and implementation of the project and the impact of Podlabin on the subsequent expansion of the city.