This paper presents a methodological approach to residential block design for sustainable urban development for hot-summer and cold-winter climates. Taking Ankara as a case, its focus is on developing an energy efficient design process as regards residential block geometry with optimum performance for both climate and energy use. The numerous variables analyzed are orientation, building geometry and envelope, heating and cooling loads of buildings, and microclimatic conditions including solar radiation, air, and wall temperature, and wind speed. It is also important in this study to demonstrate the potential use of "free and user-friendly" simulation tools for such analysis in the early design phase for those who are not experts but have moderate knowledge of urban microclimate and energy. For this aim Weather Tool v2.00 for climate and passive design analysis, CASAnova 3.0 for building energy analysis, and ENVI-met 3.0 for microclimatic analysis are used.