Since the Habitat II Conference in 1996, the wider context of urban development has changed considerably and many urban challenges have become more pronounced and evident. The globalisation of economies and value systems, population growth and rapid urbanisation, the threat of climate change and environmental degradation, increasing inequalities, global migration, global health risks and the impact of new technologies have all been reshaping the challenges facing the governance of cities and their societies. This Habitat III policy paper focusses on urban governance, capacity and institutional development and identifies ten key messages based on aspirations for the right to the city, sustainable and equitable development and territorial equity.