The development of economic activities in urban areas demonstrates highly rapid dynamics, particularly in developing cities such as Bandar Lampung. The growth of the trade, service, industrial, and micro, small, and medium enterprise (MSME) sectors has led to changes in land-use patterns and increased pressure on the environment. The unplanned distribution of economic activities may generate various environmental problems, such as pollution, traffic congestion, land degradation, and unequal development among regions. Therefore, a study integrating economic and environmental aspects is required to understand the distribution patterns of economic activities and their impacts on environmental conditions. An environmental approach is essential to ensure that economic activities are oriented not only toward growth but also toward sustainability. The results of this study consist of a spatial analysis using Geographic Information Systems (GIS) and an environmental approach regarding the suitability of modern market locations in relation to traditional markets in Bandar Lampung. The conclusion of the study shows that the buffer analysis with a radius of 250 meters indicates that, out of a total of 330 recorded modern markets, 292 units (88.5%) comply with the provisions stipulated in the Regional Regulation of Bandar Lampung City Number 3 of 2022. Meanwhile, 38 units (11.5%) do not comply with the regulation because they are located within a distance of less than 250 meters from traditional markets.