Land re-adjustment (LR) is a practical model in the management of land development in the urban development process. One of the most prominent issues in the management of slum improvement is the multiple ownership of the land. Most cities in developing countries, relocate and provide apartments for the inhabitants in handling a slum area. Tangerang City also has its problems in handling slums. In order to achieve sustainable development, we attempt to develop slum areas by considering three aspects: social acceptability, affordability, and environmental sustainability. The environmental aspect is analyzed by considering carbon footprint generated by community activities in the area with and without land re-adjustment. The Dynamics model then is chosen to formulate the relation between the availability of land, water resources, landfill capacity (landfill) and electricity supply capacity with consumption pattern of carbon footprint. There are major dynamic loops, namely: utility, population and housing causal loops. The dynamic model shows a causal link that population has generated the most variable loops, which then contribute to housing and utility needs. In managing slum areas, Land re-adjustment model is able to reduce carbon emissions to about 40 % compared to the other model from business as usual scenario.