This article discusses how street design and traffic affect social relations in urban neighbourhoods. Three street types in the city of Basel, Switzerland were studied: a 50km/h street, a 30km/h street and three encounter zones (20km/h and pedestrian priority, also known as woonerven or home zones). The effects were measured in terms of neighbourhood interactions, use of public space and the personal feelings of belonging of residents. The study, standing in the tradition of Donald Appleyard’s liveable street research in the early 1970s, was carried out in the framework programme ‘Social Inclusion and Social Exclusion’ financed by the Swiss National Science Foundation and by the Swiss Federal Office of Sports. The results show that urban neighbourhoods are (still) very lively social places, despite their often lamented anonymity and individualisation. Streets with slow moving traffic, limited space for parking and good environmental qualities offer a large potential for personal development, contentment and social integration. Neighbourhood contacts in such streets are more frequent and more intensive and the separation effects are substantially smaller. Liveable streets in urban neighbourhoods can be great places for public life and social inclusion.