Urban centres in Nepal will continue to grow as the trend to migrate to urban centres from neighbouring rural areas in search for better economic opportunities continues. This trend will have a significant impact on the existing infrastructure facilities and services of the urban centres. Haphazard growth and inadequate services have not only degraded the environmental quality of the urban centres but have made some urban areas uninhabitable. This plan aims to develop Leknath Municipality as a “Garden City” and proposes policies, strategies and activities for land use accordingly. Also proposed are strategies to build appropriate infrastructure and human resource capabilities to develop the tourism industry.