In Nepalese context urbanization trend has been prominently documented in Kathmandu valley. Urbanization of the valley seems to have started about a little over two thousand years ago, during the Kirat rule. The city was rich and self-sustained, with its strong agricultural and economic base. Various rulers of different dynasties Kirat, Licchavis, Mallas to Shahs contributed in its development and prosperity.

The valley shows distinct urban settlement and land use pattern with the proper understanding of sustainability. The settlements were compact in nature and within them were hierarchy of spaces depending upon the social position held by the people especially during the Malla period.The royal palace or Durbar Square with series of courtyards and big open spaces with temples in it occupied the central position within the city. The immediate area surrounding the palace was allocated for the priests, noblemen and people belonging to the high castes. Next to this were people of the business community, craftsmen, farmers and workers. To the outermost boundary or the periphery of the city were the lower caste groups such as cleaners, podes, butchers etc. Agricultural land extends beyond the city area. This is in consonance with the traditional urban settlement pattern of human history.

The urban design of the old city was dominated by courtyard system. Buildings were built around interconnected courtyards large and small. Often the buildings in a courtyard are owned by people belonging to a single caste, which also determined the occupation of the people in those days. Courtyards were an essential element of the urban fabric serving the multiple needs of its inhabitants. These provided vital open spaces within the compact settlements where cultural and religious activities that dominated the social life of the people were performed. In addition they also provided space for economic activities and recreation.

Several existent small towns and settlements in its peripheral areas with close socio-economic and cultural linkages could have been developed with the present day concept of satellite towns to relocate the growing urban population without infringing the existing city boundary.

The control and regulation of the land use together with other aspects of urban development is another interesting aspect to notice. These were often enforced through religious doctrine rather than the law, which the highly religious people of those days strictly followed wholeheartedly, and this further ensured its success and self-continuity for generations. (LSMC, 2013)

Waste generated from waste was organic which was used into the farms as manure, similarly waste water was also diverted to the agricultural areas. People were guided by the religious belief, rivers, land were worshipped by the people hence they were not exploited by the people neither were polluted.

However modern trend of urbanization which was quite unsystematic and unscientific started with emergence of Rana regime in the country. While they also induced unsustainable land use pattern, meanwhile rivers started being polluted.

The Ranas built their palaces in the rural setting where infrastructure followed buildings. Similarly their courtiers also settled in the nearby areas of the palace without any proper planning. Hence the trend of unsystematic settlement emerged from that time. The trend of infrastructure following houses and settlement is still prevalent in Nepal which has promoted unmanaged urbanization (Prabin Shrestha, Personal Communication, July, 2012).