The planning of the urban industrial district is aimed to promote urban economic development, and offer better job opportunity. However, the traditional production type has lowered the urban environment quality, and has long been insulted by the public. In the meantime, the technology improvement and the flexible production, has also altered the land use structure, as well as the planning concept. The strict land use zoning has allowed business center as well as warehouse and wholesale enter the industrial district. So, industrial district has two issues, when facing traditional production and flexible production. Firstly, the production externality problem still exists, and how should the production environment be improved? Secondly, the higher the mixed use, the greater the potential conflict arises, how can we avoid this situation? Based on empowerment theory, this study tries to discuss the voluntary environment management mechanism and operation model inside the industrial district, and attempts to promote production environment of industrial district to avoid conflict by using the button-up organization type. This is a 2-year plan, in which the first year plan has seen the completion of several cities for the industrial district along with trial use of a self management system. Last year, we completed the induction of industrial district types. And, after touring various industrial districts, we have chosen Shih-Tsu County (as the production function type) and San-Chung County (as multi-function type) as case study, to proceed with interview into various production environments.