SUMMARY
The implementation of an ‘appropriate’ housing subdivision in Lae, Papua New Guinea represents a new approach in creating an acceptable environment for the urban poor. The unique hexagonal design of the Tensiti development and its aims and policy implications are discussed. It appears that at least some of the urban poor of Lae now live in a settlement which satisfies the demands of town planners, urban administrators and the realities of the settlers' basic needs and resources.