The Chief Minister�s Rajasthan Economic Transformation Advisory Council (CMRETAC) commissioned IIHS to carry out a study on Urbanisation of Rural Areas, in order to provide recommendations for sustainable and equitable urbanisation for the state of Rajasthan. This involved recommending pathways through which Rajasthan�s urban transformation could be geographically decentralised, connected to the geography of natural resources, economic activity, and current and future infrastructure investments in the state. The study assessed the extent and geography of current and future urbanisation for the state and identified challenges associated with urbanising settlements through primary field work and secondary analysis of existing state policies. The key finding of the study was the gap in preparedness, resources and capacities for settlements to provide for urban functions and services. A key recommendation of the study is to treat urbanisation as a continuous process and create a policy framework that identifies rapidly urbanising settlements and provides necessary support in terms of key infrastructure (physical and social), planning and governance. The changing settlement structure of Rajasthan shows an increase in the proportion of population residing in urban settlements, particularly Class 1 towns in 2021. In addition, very large villages have also increased, which shows the potential for settlements that might convert to urban in the near-term future and need support to be ready for this transition. The present and future geography of urbanisation in Rajasthan is closely connected to the availability of resources, particularly water. It is important to plan for future urbanisation keeping these constraints in mind, particularly in the context of climate variability. Similarly, there are strong linkages between urbanisation pattern in the state with infrastructural development and investments with majority of urbanising settlements being concentrated around industrial corridors and RIICO parks which require planning attention to accommodate growth. The report identifies challenges and recommendations within the following themes: ? Transitions and Governance ? Planning ? Development and Infrastructure ? Natural Resources and Environmental Planning ? Capacity and Institutions