M.A. / In terms of the Constitution, municipalities have a mandate to govern, to provide services and to promote social and economic development. Several pieces of legislation enhance the developmental role of local government, such as the Development Facilitation Act, 1995 (Act 67 of 1995) empowering municipalities to establish statutory land development objectives setting out a clear approach to land development for each municipality. The objects of local government as stipulated in section 152 of the Constitution of the Republic of South Africa , serve as a guideline in fulfilling its role and functions. The Integrated and Development Plan approach is more appropriate in facilitating efficiency and effectiveness in municipalities. Several provinces have passed regulations requiring that the land development objectives also cover economic development goals.The Department of Provincial and Local Government (DPLG) is compelled by law to use the Integrated Development Planning (IDP) and this is likely to shape the actions of local government in implementing policies intended to reduce poverty and inequality. A municipality must structure and manage its administration and planning process to give priority to the basic needs of the community and to promote the social and economic development of the community, according to the Constitution of the Republic of South Africa. Only when the majority of the citizens receive at least a lifeline supply of basic-need services and goods, can equity be achieved. This study focuses on the City of Johannesburg's constitutional obligation to promote local economic development. The study is limited in this way to make it more manageable. This area is selected on the basis that there is a diversity of people whose economic levels are highly different and therefore there is a need for LED. A municipality's approach to street traders in, for example, former Black township areas, is likely to be quite different to approaches in CBDs. The study is mainly a historical study of both published literature and unpublished material concerning municipalities' constitutional obligations to promote LED. The study is trying to pin down facts, and identify trends, in a rapidly changing environment.