Urbanisation, brings in its wake, multitude of problems affecting the quality of life of the urbanities. Relatively speaking, though the quality of life is better in urban areas when compared to rural areas, there is much to be desired on various parameters. More importantly, urbanisation puts extreme pressure on urban local bodies both in terms of governance as well as provision of services including basic needs like housing, water, sanitation, education, health etc., which affect the quality of life of the urban people.

One major problem reflecting in the urban area is poverty rather because of scarcity of land or because of non-availability of developed land or because of excessive land costs. The migrants settle down on whatever land is available either belonging to the government or private agencies, leading to formation of slums and blighted areas. Though not all those living in these slums are poor, a majority of them can be categorised as poor while some of them are extremely poor.

Levels of poverty are compounded based on the caloric requirements of the rural and urban people. Based on this, the planning Commission estimated in 1987-88 about 25 percent of the urban people in AP live below the poverty line. The expert group under the chairmanship of Prof. Lakadawala, constituted by the Planning Commission, Government of India, however, estimated that about 42 percent of the urban people in our state are living below the poverty line.