‘Socialist living, working, and residing’ – this East German expression reflects the belief in the importance of the dwelling and neighborhood as counterpart to the collectivism and camaraderie of the workplace. The country’s regime conceived of newly-built housing developments, or Neubaugebiete (singular Neubaugebiet), viewing them as concrete and glass frameworks in which communities of citizens would lead a certain way of life. Nonetheless, previous literature on urbanization in the former German Democratic Republic (GDR) entertains little or no analytic regard for the ideals of socialist philosophy and the need of the governing Socialist Unity Party (SED) for an identity which would serve as the foundation for entire cities. Neubaugebiet Hellersdorf serves as an example of the influence of ideology on city planning. Conceptualized in 1979 by the SED, construction began on the residential buildings and their associated infrastructure in 1985. Construction continued until 1989-90, reaching substantial completion. By that time, the state residential construction conglomerates had erected nearly 32,000 apartments where more than 80,000 people now live. The typical structure in the development comprises five stories of prefabricated concrete slabs; several buildings grouped around a central courtyard form a residential block. Situated on the easternmost edge of Berlin, the hyper-settlement belongs to the youngest city district, Berlin-Hellersdorf. Several issues arise from analysis of the planning, locating, and financing of Neubaugebiet Hellersdorf. The first question that needs to be explored is the regime’s policy of embarking upon huge projects of new construction despite the strains placed upon a rapidly weakening economy, rather than rehabilitating the historic inner city of a metropolis such as Berlin. Additionally, what lay behind the official decision to sire what was to become the country’s last hyper-settlement, a Grossiedling, in the capital? How did that decision affect the use of economic resources for its realization and design? Finally, given the social concerns of the SED in establishing the Residential Construction Programme, an examination of the demographics of the development grants a rare opportunity to observe the fate of ideology meeting residential necessity. Through archival documentations, interviews and statistical data this article reveals the intertwining of state policy and city planning in the former GDR.