ABSTRACT. An industrial district is a group of firms housed in a limited geographic area and specialized in one or more stages of a given production cycle. The concentration of firms in a limited area characterizes unique environmental problems in conjunction with local communities that need to be carefully assessed. This paper presents an assessment of the environmental impact of industrial districts that is carried out using an input-output accounting model in connection to relevant materials and energy flows within an industrial district. Resources used, wastes produced and energy consumed in the system of concern are quantified by the input-output accounting model to provide invaluable information for both private and public managers leading to meet the sustainable development goals in local communities. Also, information for screening the technologies in conjunction with recycling, re-use, and recovery strategies can be drawn. Two case examples, related to the Italian industrial districts of Sassuolo and Matera, in North and South Italy, have been analyzed using such input-output accounting model as a tool.