Urbanization has provided opportunities for economic growth and poverty reduction in countries all over the world. Cities are well positioned to provide services due to the economies of scale that the density and spatial concentration of people and firms allow. That being said, if not carefully managed and planned for, the benefits of urbanization are not equally realized by all and urban growth can aggravate inequalities in access to services, employment and housing. This is particularly true in rapidly growing cities where services are not able to keep up with demand and land located near jobs is often constrained. Ulaanbaatar, the capital and largest city in Mongolia, has grown rapidly with a population of close to 1.4 million. The rapid growth, designated urban form, and weak fiscal management has resulted in a number of urban management challenges, particularly with regard to the delivery of public services.