The presence of open space on an economic landscape influences the area, density, and prices of residential development. We show that the kind of influence that open space has on urban form matters for planning and recreation goals. In our spatial city model residents prefer to live close to open space for the benefits of (1) recreation and (2) ambient amenities. Our findings suggest that the type of benefits offered by open space matter for the optimal proximity of open spaces to each other and the city center. We show that policies adjusting recreation benefits and costs are able to influence the urban form to achieve planning and recreation goals. Open space benefits influence the location pattern of income groups, and we show that high income groups locate away from open space if increases in income make housing demand rise faster than recreation demand.