In urban design, what is a land use development that includes separate areas for diverse functions called?

The correct term for a land use development that includes separate areas for diverse functions is known as a Planned Unit Development (PUD). A PUD is a type of development designed to integrate various uses such as residential, commercial, and recreational spaces within a cohesive plan. This approach allows for flexibility in zoning regulations, enabling developers to create spaces that meet the needs of the community while promoting a mix of activities in a concentrated area.

In contrast, mixed-use development typically combines residential, commercial, and sometimes industrial uses within a single structure or adjacent buildings, emphasizing a blend of functions rather than separated areas. Transit-Oriented Development focuses on creating spaces around transit hubs to encourage public transportation use. A superblock refers to a large area of urban land that is closed to traffic to create pedestrian-friendly spaces but doesn't inherently focus on mixed functions separated by specific areas. Thus, a Planned Unit Development is the most accurate term to describe a land use strategy that distinctly organizes diverse functions while integrating them into a larger overall plan.