The persistence and enormity of the housing backlog facing the poorest of the poor is an indication of the gravity of the housing crisis in Gauteng. The challenge exists despite government efforts to provide low-cost housing and formalize informal settlements. Against the background of this persistent need, this study investigates the City of Tshwane Municipality’s response to informal settlements in Mamelodi Phase 3, Gauteng. Participants from Mamelodi Phase 3 and officials from the City of Tshwane Municipality were purposively sampled. Research findings indicated that informal settlements in Mamelodi are caused by various factors, which include movement from rural to urban areas, movement from other provinces to Gauteng and natural population growth. Furthermore, the persistence of the informal settlements is caused by poverty. Most people continue to live in informal settlements since they cannot access financial assistance from the banks as per the National Credit Regulation (NCR). Corruption is also a formidable problem as some informal settlement dwellers alleged that officials of the City of Tshwane Municipality allocated houses in contravention of set procedures. This research shows that the City of Tshwane’s informal upgrading policies have failed in terms of providing adequate housing. Further, the housing policy has not succeeded in creating long-term sustainability in the delivery of low-cost housing to deal with the problems of the informal settlements. Although the City of Tshwane has implemented the Re aga Tshwane, which involves a wide range of policies, programmes and strategies to address the developmental challenges facing dwellers in informal settlements, more is required. On this basis, it is recommended that proper consultation with the community should be held to improve the lives of people in informal settlements in line with Section 26 of the Constitution of the Republic of South Africa (1996), regarding every person’s right to have access to adequate housing. / Public Administration and Management / M.B.A. (Public Administration)