In recent years, the theoretical conception of an “ideal” trajectory for urban development has shifted away from a focus on physical development to one that highlights the need for improving the living conditions of the urban poor through community building, employment, and income generation. However, the actual implementation of policy on the ground reveals that these changes have remained largely constrained within the realm of theory. Employing a case study approach this paper looks at the place of the urban poor in the development of Lahore from a historical perspective. Drawing on primary and secondary sources, it is argued that the logic of urban development in Pakistan needs to change in order to make these lower income groups the primary focus of policy.