Island and coastal areas in northern and western regions of Scotland are characterised by comparatively high levels of wind and rain - a combination that increases the wind-chill cooling of buildings and leads to higher energy consumption. This paper describes a low-energy housing demonstration project in the Orkney Islands, an island group located off the north coast of mainland Scotland. The background to the project is discussed, in particular, why there was a need for a more appropriate design, the features incorporated, and the main findings of the research.