This essay gives a short description of three different theories that can be used to explain the relationship between identity and the physical environment: social identity theory, place-identity theory, and identity process theory. The place-identity theory has given a positive contribution to the field of psychology, emphasizing the influence of the physical environment on identity. But there is little research to support the theory, and its details are not seen in relation to other psychological identity theories. Despite mainstream psychology`s ignorance of the physical environment, processes described in social identity theory and identity process theory can also be used explaining the relationship between identity and place. It is also argued that if a general identity theory is used and further developed to explain the place-related aspects of identity, it can unite and broaden knowledge within both environmental and mainstream psychology.