Informal land occupations in South African urban areas are transformed into permanent, legal settlements through the government's national housing programme, with its housing subsidy scheme. To date, this programme does not contain a specific mechanism for in situ upgrading of informal land occupations. In most cases, the project-linked capital subsidy system is applied, delivering standardised serviced plots of 300m2 with freehold titles and a minimal top structure or house. Usually this involves relocation to an area more suitable to this conventional form of project development, which was introduced in the late 1980s for the mass delivery of serviced sites on large tracks of cheap land. A number of project-linked capital subsidy developments have been referred to as 'upgrades', as the project development has taken place on the informally occupied land. In these cases, the organised settlement communities have challenged the conventional development procedure by resisting relocation, therefore playing an active role in determining the nature of government intervention. However, once an agreement for development is secured, rigid standards and procedures condition the release of project-linked subsidies by the Provincial Housing Boards. In essence, this reduces community-based organisations to mere consultative bodies, expected to ensure the smooth implementation of an externally designed project.In a recent review of the informal settlement literature of the 1990s in South Africa (Huchzermeyer, 2001), I conclude that our understanding of intervention processes has been biased towards the realities of project managers and implementers, rather than the experiences of organised informal settlement communities. Where case studies have taken into account the perspective of community organisations, these tended to focus on violent