In 2001, India with 286 million population inhabiting in urban areas, was the second largest urban population in the world, and it is being estimated that by 2030, nearly 40 % of the population would be urban. Globally, the figures are even more fascinating. As per the World Bank estimates, currently half of the global population is residing in urban areas and in the decades to come, 60 percent of the population will be residing in urban areas. Corroborating this forecast, the World Bank report has cited that the 90 percent of urbanisation is taking place in developing countries, adding 70 million people in urban areas, per annum. It further says, that during the next two decades, the urban population of the world’s two poorest regions—South Asia and Sub-Saharan Africa—is expected to double. Viewing the statistics, a re-look on urban development theory is inevitable. Urbanisation is often viewed as a negative trend, but in fact, it occurs naturally from individual and corporate efforts to reduce expense in commuting and transportation while improving opportunities for jobs, education, housing, and transportation. Urbanisation, as engine of growth, proliferates jobs, socio-economic development and most importantly a tool for poverty alleviation. The key challenges with urbanisation are to provide better transportation, integrated public infrastructure, increase human capital, long term planning, sustainability, citizen centricity, and distribution of equal economic opportunities and poverty alleviation. As a result of fast spurt of urban population the most urban settlements are characterized by shortfalls in housing and water supply, inadequate sewerage, traffic congestion, pollution, poverty and social unrest, making urban governance a difficult task. Urban Local Bodies (ULBs) which are statutorily responsible for provision and maintenance of basic infrastructure and services in cities and towns are under fiscal stress. At the same time, they ULBs have little discretion over most of these essentials. Thus equally vital is the need to devolve power to ULBs and local governments, to equip and empower them to address the issues in making up of cities, a safer and better place to live.