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This chapter discusses the rapid urbanization in Iran which has resulted in the proliferation of unplanned, underserviced, and poverty-stricken neighborhoods often referred to as slums. It examines some of the general factors that influence informality and decay in Iranian cities, such as inflation and unemployment, income stagnation and inequality, and speculative land markets and restrictive land-use regulations. Iran’s largest port, Bandar Abbas, is used as a case study to explore the dynamics of urban growth, informality, and decay. The chapter also describes the city’s informal settlements, and provides speculations on the future of the low-income and underserviced settlements in Bandar Abbas by expressing optimism about current initiatives that are supposed to take a holistic and regional approach to addressing urban polarization in the port city.
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