Successful squatter settlement regularization/upgrading projects have the following characteristics: 1. * Upgrading projects are relatively cost-effective in a situation of high demand for shelter and services. 2. * Upgrading projects are most successful if they are simple and down to earth. Basic programmes of service provision were relatively successful, whereas additional components such as income generation and home improvement credit have been less effective. Simple programmes have extended coverage and ensure faster implementation. 3. * Components to improve land tenure had to be carefully implemented to enhance the perceived land tenure security, as well as, to recover costs. 4. * Community participation was essential for the success of upgrading programmes. 5.