Physical Environment Cultural Environment Physical environment includes all those elements which nature has made available as free gifts for human development. For example, land forms, soils, climate, water, natural flora and fauna, etc. It includes all those physical-cultural elements which have been developed by man through his gained knowledge and technology. For example, houses, villages, towns, network of roads and railways, modes of transportation, industrial units, fields, hospitals, sports complex, means of entertainment, markets, ports and goods of daily and special use.