Analysis and evaluation of existing environmental conditions on the territory of municipality of Subotica represents the basis for defining the sustainable development strategy. There are few different sources of environmental pollution on the territory of municipality of Subotica, and some of them have 'important' influences on closer or wider environment. This paper represents environmental state according to conditions of separate elements (air, water, soil), problems of noise and waste, and in the end proposes certain mitigation measures. Also, this work shows categorization of the environment from the 'pollution' point of view. Measures of mitigation and environmental quality improvement are in accordance with potentials and weaknesses of given area and certain needs of local population.