The Constitution of India provided for special powers to certain regions to decide upon their local governance, according to their traditions and culture. The Constitution created two such categories through Article 234 under the Fifth and Sixth Schedules: Scheduled Areas and Tribal Areas respectively. While PESA was passed in 1996 and panchayats have been formed under it, MESA still has not been passed. Yet, municipal governments have been formed in Scheduled areas. The conflict that municipal governance faces in Scheduled Areas is because of this lack of legislative protections.

Urbanisation is inevitable and is taking place in tribal dominated areas as well. Urban areas need governance systems which are geared towards their particular needs.