Informed by the sustainable livelihoods (SL) approach, this project investigates whether the impact of the KwaMathukuza housing project has gone beyond meeting the basic human need for shelter to have a broader positive impact on the lives and livelihoods of the occupants. In so doing, the research also considers if the housing project (and the relocation of people to these houses) had any negative effects on the livelihoods of the households. The main methods of data collection in the study are qualitative structured interviews with a sample of beneficiaries and semi-structured interviews with various key informants. The main findings are consistent with what has been found by studies on low-cost housing in South Africa. The following challenges remain: under-funding; and anti-poor policies such as the Elimination and Prevention of Re-emergence of Slums Act (EPRSA) of 2007; failure to deliver on targets set; poor quality of houses; top-down approaches that do not resolve problems; challenges in acquisition of suitable land; beneficiaries selling their houses without the knowledge of the Deeds Registrar; and delegating housing delivery to the private sector. / Thesis (M.Dev.Studies)-University of KwaZulu-Natal, Durban, 2011.