For many years, historical and artistic heritage of St. Petersburg has been the main object of researchers` scientific interest. New information about the architectural and urban development of the city has been provided by studies related to the protection of surviving historical buildings. Information about the initial stage of the urbanization of the city appeared during developments in related fields of science (history, economics, literary criticism, soil science and hydrography, etc.), but the data revealed are not systematized and are scattered among individual publications. In this article, taking into account the provisions of economic geography, the formation of St. Petersburg development is considered as part of the process of improving the available infrastructure of the territories in the Neva Delta area. It is emphasized that the dynamic evolution of residential development was due to an increase in the level of investment and the impact of an evolving land use system. Specific examples demonstrate the transition from the pioneer stage of development to the reconstruction stage development, and the role of organizational and economic levers in the formation of the main morphotypes of residential development is considered.The features of urbanization in early period of St. Petersburg existence are considered on the example of the development of the southern bank of the Neva, where the target settings were clearly manifested immediately with the beginning of the development of the territory. The implemented analysis of the building development on the coastal strip to the East of the Admiralty reveals the main features of the period from 1703 to 1715 and shows that it can be considered a pioneer period in the development of the territory.