Urbanization by developers does not bear the environmental and soil degradation costs generated by the projects. Land used for agricultural purposes keeps the soil fertile for a longer period of time and gives genuine return in terms of agricultural produce and open space. No justification is done with conservation efforts done by private parties such as NGO’s and other private trusts and rules and regulations framed for use of public land due to market failures. Land use regulation can be implemented by using various approaches such as zoning and direct regulation etc. Land use regulations are important in areas with rapid urbanization. If the urbanization will be left uncontrolled, it will result in depletion of natural environment and top layer of the soil and will adversely affect the long-term economic growth. Policy makers should frame such policies that do justice with humanity by conserving the land from urbanization and providing ample opportunities for the development of farming and soil conservation by imposing strict land use regulations that can curb the urban development to some extent. These regulations must make a balance between urbanization needed for economic growth and preservation of agricultural land needed for the survival of mankind.