In developing as in advanced economies, the pace of urbanization has continued to accelerate with the result that many less developed countries are experiencing problems in their urbanized areas which are quite similar to the advanced economies. In Iran, increased oil revenues which have aided in overall economic expansion have created differential growth rates in industries with different impacts on urban, as against rural growth, bringing along specific urban problems which require special consideration.

In Tehran, as in the major growth centers of other developing countries, population was growing at an annual rate of 6.6 percent in the period 1966-1969. Since 1969, the natural rate of growth has somewhat decreased but still remains at the high plateau of 6.1 percent per annum. As a consequence of this rapid rise in the population, the number of inhabitants of Tehran reached a level of 3.9 million in 1972, according to Iranian Plan and Budget Organization estimates.