The present Directorate of Urban Affairs traced its genesis to the Department of Town & Country Planning & Housing which was constituted after the attainment of statehood in 1972and on the adoption of the Assam Town & Country Planning Act, 1954, 1962 and 1963. The Department was bifurcated in the year 1982 and a separate Department of Town and Country Planning was set up with a view to concentrate on the problems of urbanization in the State as many new townships and subdivision headquarters were coming up and Shillong was facing the pangs of growth. The Department of Town and Country Planning was renamed as Department of Urban Development in 1988. In 1990, the Department of Municipal Administration was amalgamated with the Department of Urban Development and a new Department of Urban Affairs was created to given more emphasis on urban planning and urban administration and to achieve better coordination in planning, development and management of urban centers.
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