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The development of settlement in urban areas in Tanzania Mainland are regulated by various laws both principal legislation and subsidiary legislation. These laws also are implemented by the planning authorities, the central government authority and the local government authority and the special agency or authorities like Capital Development Authority for planning and design the capital city. However in urban areas has experiencing the growth of unplanned settlement.The study makes an assessment on the effectiveness of the legal framework in facilitating the process of making orderly and planned development of settlement in urban areas for eliminating the increased informal settlement. Further the study make an assessment on the effectiveness of the planning institution in implementing the planning laws and standards in eliminating the informal settlement in urban areas.