Urbanization has provided opportunitiesfor economic growth and poverty reduction in countries allover the world. Cities are well positioned to provideservices due to the economies of scale that the density andspatial concentration of people and firms allow. That beingsaid, if not carefully managed and planned for, the benefitsof urbanization are not equally realized by all and urbangrowth can aggravate inequalities in access to services,employment and housing. This is particularly true in rapidlygrowing cities where services are not able to keep up withdemand and land located near jobs is often constrained.Ulaanbaatar, the capital and largest city in Mongolia, hasgrown rapidly with a population of close to 1.4 million. Therapid growth, designated urban form, and weak fiscalmanagement has resulted in a number of urban managementchallenges, particularly with regard to the delivery ofpublic services.