Developments in the technological fields have opened doors to sustain quality of life for making cities smarter and democratic by allowing citizens to play active roles rather being just passive participants along with their governments. Therefore, in this study we have proposed an idealized interaction system- a process used for organizational development based on Interactive Planning Approach, where citizen and government adopt more effective and efficient ways to coordinate, collaborate and communicate for the development and growth of different systems in the city, which ultimately serves as “system to systems”. By using Delphi methodology- a reaserch approach by Norman Dalkey (1946), we invited 25 people representing a wide variety of interests participated in the series two rounds of surveys to suggest more effective and efficient methods of interaction for the citizens and government. All proposed ways after second round of survey are used to design the Idealized Smarter City model – a model of knowledge-based sustainable development. However, structural and behavioral comparisons suggest the need of further improvement to get the proposed system implemented, in review of rapidly increasing population and resulting deteriorating resource availability to sustain the social and technological needs.