Indonesia, as a maritime country, has many coastal areas with fishing villages that have significant potential, especially in sociological, economic, and environmental aspects, to be developed as models for sustainable development. Indonesia, with its long-standing fishing traditions, showcases the abundant potential and traditional that could help address global challenges such as climate change, rapid urbanization, and environmental and economic issues. This study aims to develop a conceptual model for sustainable cities and communities based on local potential and Wisdom towards the establishment of a Blue Village in the fishing village of Mundu Pesisir, Cirebon, Indonesia. The urgency of this study lies in the importance of developing sustainable strategies to address these challenges in coastal towns. This study involves an interdisciplinary team, including experts in sociology, social welfare, architecture, law, economics, and information technology. Through the identification of local natural and sociocultural resources, as well as the formulation of sustainable development strategies, this study develops a conceptual Blue Village model that can be applied to other coastal villages. The method employed in this study is qualitative descriptive, involving the steps of conducting a literature review, analyzing local potential, organizing focus group discussions, conducting interviews, and finalizing the conceptual model. The study employed, a purposive sampling technique, involving 110 participants. The results of the study include the modeling of a sustainable city and community development based on local potential and Wisdom aimed at creating Blue Villages in Indonesia, and It is expected to make a significant contribution to the creation of competitive and sustainable coastal areas capable of addressing the challenges of climate change and socioeconomic dynamics in the future.