In the early part of the twentieth century, town planning was considered a part of municipal functions. Where a town was growing, it meant construction of a few new roads and the question of inadequacy of existing services hardly arose. As these problems grew bigger and  it went beyond the capacity of the municipal bodies to handle them, Improvement Trusts were created and they were entrusted with town improvement schemes, town expansion schemes and provision of essential services, amenities, etc.

The Improvement Trusts were also given powers to raise financial resources for their programmes through means which were not normally available to the municipal administrations. The first Improvement Trust to be constituted in India was in Bombay in 1898. The dreaded plague that had brought havoc in Europe broke out in Bombay in 1896 and devastated the city. 

Consequently, the Government formulated a scheme for the better ventilation of the densely populated parts of the city, removal of insanitary dwellings and prevention of over-crowding. In September, 1897, the Government of Bombay put forward definite proposals for the establishment of an Improvement Trust for the city. Thus, the City Improvement Trust was created under the Bombay Act, IV of 1896. After independence Rajasthan state government  constituted urban improvement trust under UIT act 1959 in major cities like Jaipur, Jodhpur, Udaipur and Ajmer etc. 

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