Although the centre down and grass roots approaches in many respects may represent a developmental antithesis, a good case may be made for the combination of the two approaches under dualistic economic circumstances. An attempt is made in this paper to demonstrate how these diverse development policies may be successfully reconciled in urban Southern Africa. A review is given of the theoretical foundation of the two development approaches with a view to indicating how some aspects of these approaches may be combined to integrate the formal and informal sectors in urban areas in Southern Africa.