With an increase in population density, towns in hilly regions are facing extreme challenges concerning the expansion of the city limits. The creation of satellite towns seems to be one of the solutions to counter this situation. However, settlements in the hilly region are challenging. Planning of such sustainable settlements in hilly regions involves a deeper study of the region’s complex topography and geology. In addition, these settlements need to respond to the local climatic conditions and retain the region’s culture. The current study aims to understand how existing settlements have tried to maintain a balance between culture, climate, and geography. First, the study conducts detailed documentation of the study area concerning the region’s settlement patterns, geography, culture, and climate. It also identifies the role of traditional construction techniques in facilitating resilient development. Later, the study analyzes the impact of these identified factors using geoinformatics. The results revealed how these settlements were consciously planned to respond to the identified factors. It also indicates that traditional construction techniques not only tackle the local climate but also play a major role in local culture. Thus, this study will help create sustainable new settlements in similar geographical and cultural conditions and contributes to SDG 11 of Sustainable Cities and Communities.