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The Urban Development Authority was established under the Urban Development Act No. 41 of 1978 in order to implement the integrated development of urban development areas declared for the time being. According to the Act, the subsequent amendment for the same Identification and Declaration of Urban Development Areas is also identified as the scope of the Urban Development Authority. Preparation of integrated development plans for the declared area and implementation of the same are basic activities of the Urban Development Authority. According to the process, this development plan has been prepared for the entire urban area, which includes Kahawatta and Pelmadulla, the two main towns of Rathnapura district. Accordingly, the area consisting of 5 Grama Niladhari Divisions belonging to the Kahawatta Pradeshiya Sabha area of the Ratnapura district and 3 Grama Niladhari Divisions belonging to the Godakawela Pradeshiya Sabha area and 4 Grama Niladhari Divisions belonging to the Pelmadulla Pradeshiya Sabha area as the Kahawatta urban area has been declared as the Kahawatta Urban Development Area (9.15 square km) under the Gazette Extraordinary Notification No. 1535/14 dated 8th February 2008. Further, the area consisting of 17 Grama Niladhari Divisions belonging to the Pelmadulla Pradeshiya Sabha area of Rathnapura District has been declared as the Pelmadulla Urban Development Area (25.7 square km) under the Gazette Extraordinary Notification No. 1809/13 on 09th May 2013. The potentials and problems have been identified by conducting extensive studies on the economic, social, physical, and environmental background of Kahawatta and Pelmadulla cities. Accordingly, it has been decided to prepare a regional-level development plan to solve the existing problems and develop them as sustainable cities by effectively using the identified potentials. Thus, it is planned to uplift the quality of life of the people in and around the city through the expected physical and social development. This development chapter, Chapter 01 Background of the Development Plan Introduction 3, has been prepared in accordance with the powers assigned by the amended act of the Urban Development Authority of 1982 No. 4, aiming to strengthen the urban economy as a planned city for the period of 2023–2033. The preliminary studies have been started and implemented since September 2019. In implementing the planning process of this development plan, all data has been formally collected and analyzed, and the views and suggestions of all parties, including the general public, have been taken into consideration. All the development proposals of the development plan are prepared according to a vision that is aligning the analysis outcomes. Those details are contained in this report in a concise and detailed manner.