Current urbanization trends and projections clearly indicate that the global South cities, especially of Asia and Africa, would be at the receiving end of about 80% of the expected 2.7 billion increase in urban population between 2010 and 2050. These trends and projections make it imperative for the future planning of the global South cities to step out of the box, away from the traditional planning systems, and begin to adopt inclusive and innovative planning approaches that would efficiently tackle the current and emerging urban realities in these cities rather than sticking to rigid planning standards that ignore realities, generate continuous conflict, and fail to take advantage of the potentials of these urbanization consequences, especially the resilient informal economy. The chapter examines the urbanization trends and one of its major challenges in global South cities; informal economic activities, the planning implications of these informal economic activities, various approaches that have been adopted by different governments and the effectiveness or otherwise of the approaches in tackling the challenges of informal economy. The chapter also focuses on the successful planning approaches that have been implemented with a view to portraying the key lessons that can ensure its applicability in other global South cities facing similar challenges.