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OVERVIEW OF DEPARTMENT
The urban development process began in 1961 when the planned economic development was launched in the form of first five year plan. The erstwhile Bhutan Engineering Services was responsible for construction of buildings to accommodate the civil servants. This organization continued to serve the public construction functions in a new name called "Public Works Department".

In 1974 a committee was appointed to guide urban development and it was called "Central Town Planning Committee" (CTPC) consisting of all ministers and senior civil servants as members.

In 1984, the CTPC was converted into "National Urban Development Corporation" (NUDC).

In 1989 the NUDC was renamed as the Department of Works and Housing by merging the non-road functions of the PWD.

In 1993 the Departments of Road and Works & Housing were merged and renamed the Public Works Division (PWD). The new PWD was then transferred to the Ministry of Communications.

1999 the roads and other functions were segregated and the Department of Urban Development and Housing (DUDH) was formed. The mandate of DUDH is to focus on urban development as the number of urban centers is rapidly increasing and urban problems like housing, infrastructure provision and municipal management issues are emerging, which need to be addressed comprehensively and efficiently.

There are 28 declared urban centers and 26 satellite towns. The larger towns of Thimphu and Phuntsholing have City Corporations while other towns have municipalities under the chairmanship of respective Dzongdags. Thimphu is an autonomous municipal corporation whereas Phuntsholing is yet to be granted municipal charter. All other municipalities are called municipal corporations but function under the engineering section of Dzongkhag administration.

Department of Urban Development & Engineering Services(Model)

Ministry of works & Human Settlement