Generally, construction of dams is regarded as means of economic progress in many countries. Major consequences of such projects are the inundation of upstream areas and the resettlement of entire communities in newly-built environments where they experience dramatic transformation in their lifestyles. The present study takes the Nubian resettlement experience after the creation of Lake Nasser that submerged their old settlements, along the river Nile. Following their resettlement, the design of the newly-built environment disrupted the Nubian traditional lifestyles and patterns of privacy mechanisms, territoriality and social interaction. The inadequacy of the newly-built environment was mainly attributed to the Nubians' transfer from spacious homes in the old villages to compact contiguous houses in the new settlements. The arrangement of these resettlement state built houses, distributed on the basis of household size, has further resulted in the fragmentation and the dispersion of traditional kinship-based neighborhoods. Within an interdisciplinary approach, the study is based on theoretical, historical and conceptual themes and on empirical research. It sets out to examine the households' responses towards, and adaptation mechanisms with, the newly-built environment, looking critically at the achievements of imposed top-down planning in meeting the socio-cultural and economic needs of those resettled.