In the backdrop of rapid urbanization associated with increases in population and economic development in the early sixties, it was keenly felt that a regional and central office had to be created for Physical Planning. Accordingly Urban Development Directorate (UDD) was created on the 17 July 1965, under the administrative control of Works, Power and Irrigation Department of the then East Pakistan, vide memo no. 464E, dated, Dhaka, July 17, 1965. Functions allocated to the directorate were enhanced in the year 1983, by the Martial Law Committee on Organizational set up, headed by Brigadier Enamul Haque Khan which was approved by the Review Committee, headed by Major General Atiqur Rahman

Functions of Urban Development Directorate:

• To advise the Government on matters of policy relating to urbanization, land use and land development.

• To prepare and co-ordinate regional plans, master plans and detailed layout and site plans for the existing as well as the new urban centres excluding the areas covered by the present town development authorities of Dhaka, Chittagong, Khulna and Rajshahi.

• To undertake soda-economic research and collection of data for determination of the location and pattern of future urban development.

• To prepare programmes for urban development for execution by the sectoral agencies and secure approval of those form the National Council and assist the agencies in selection of sites for implementation of those programmes.

• To act as a counterpart organization and focal point in the Government for all internationally aided physical planning and human settlement programmes in the country.

• To organize seminars/workshops for creating better physical planning awareness and to disseminate information through regular publication of the research and planning materials on urbanization and human settlement planning and development.

• To conduct in-service training of the officers and staff of organizations involved in spatial Manning and development.

• To advise the existing urban development authorities on their operations at their request.