Capitalizing on its unique built environment and intellectual assets concerning Iran's hot and dry climate, “Yazd University’s Comprehensive Planning Department” aspires to develop into a Planning Faculty as part of a would-be Art Campus. This evolution will herald an urban regeneration model in terms of an Iranian ‘neighborhood-Schools’ in Yazd City’s historic district of Mosala Godal. This yet-to-come faculty will establish a synergic relationship with the historic district in terms of contextual learning that is dynamic, creative and explorative, and of future developments that will take full account of the unique character of this context. All this implies a dynamic ecosystem involving such core features as vernacularism, identity building, and contextualism which will offer a quality experience of academic life, the discovery of native principles and values on which the UNESCO World Heritage City of Yazd hinges on them, and tries to apply them in contemporary urban planning and development.