Punggol is a town directly borders Sengkang to the south and shares riverine boundaries with the planning area of Seletar to the west and Pasir Ris to the east. Bounding the town to the north and north-east is the Straits of Johor, with Coney Island included as a part of the Punggol planning area.
Under the Punggol 21 initiative, plans to turn the area into a new residential town was announced in 1996 and development of the town started in 1998. Due to the Asian financial crisis in 1997 and the financial troubles within the construction industry in 2003, the plan did not fully materialize. In 2007, a new initiative, the Punggol 21-plus plan, was introduced to redevelop the area into a waterfront town. Punggol is divided into 7 subzones, namely, Coney Island, Matilda district, Northshore district, Punggol Canal, Punggol Field, Punggol Town Centre and Waterway East district.