The technologies of urban wind turbines have been rapidly developed in recent years, but urban wind turbines have not found a wide application due to the limitations of their designs. The power output of urban wind turbine is significantly affected by urban terrain, which can cause low speed flow with frequent change of its direction. Thus, there is a need for a new wind turbine to meet the requirements of an urban wind turbine. In this study, a novel wind turbine for urban areas was designed and developed. The investigations of the novel urban wind turbine were carried out by using computational fluid dynamic (CFD) simulations and wind tunnel tests. The results from the investigation have shown that the novel wind turbine has a great potential to harvest wind energy in urban areas. A detailed study of effects of each parameter on wind energy concentration of the novel wind turbine was carried out with CFD simulations. According to the simulation results, the shroud structure of the novel wind turbine was modified and the dimensions of the final structure were identified. It was determined that the capability of wind energy concentration of the novel wind turbine shroud has been significantly improved through the structure optimisations. Furthermore, guide vane and impulse turbine were implemented in the novel wind turbine. The flow characteristics through the guide vane was studied and discussed. It was found that the wind flow characteristics can be properly modified by implementing guide vane and the structure of impulse turbine was suitable to be implemented in the novel wind turbine due to the flow characteristic through the guide vane.