Good water quality urban lakes, wetlands and reasonably maintained green spaces have important amenity values that include provision of leisure and aesthetic enjoyment for the residents of the city. However, due to lack of proper quantification of the aesthetic and recreational benefits arising out of these assets, especially in developing countries, local municipalities fail to realize the real worth of such assets. The present study establishes a firm and positive link between market rates of residential plots on one hand and environmental attributes like good water quality lake proximity, green space proximity and better air quality on the other, in Chandigarh city of India. Results of the hedonic pricing models with linear and double log functional forms have been presented in the paper. Science based evidence has shown that people were willing to pay for environmental amenities through higher housing prices. The city administration has sufficient room to enhance current official collector rate of urban residential property up to 3000 m distance from the Sukhna lake, resulting in enhanced revenue generation. The results of the study can prove useful in urban land use planning, nature conservation and fixing property rates for the overall sustainable development of the cities in the developing countries like India.