In the modern context one of the biggest issues is actually the detrimental effect on existing industrial operations. When a residential use, and particularly a single family home moves in close proximity is severely limits the levels of noise / fumes, etc. that are allowed nearby. Existing uses are usually grandfathered in but if someone wants to expand their operations or a new business moves in it can be problematic.
Multi-family buildings can actually be a bit better in this context as it's easier to design them to shield from industrial uses. The waterfront condos beside the Redpath sugar factory in Toronto are a good example - that's essentially a blast shield facing the factory (and there for a reason):
https://goo.gl/maps/ZJVkJipGFPk