This article examines the growth of census towns in India's Capital Region because the unregulated growth of census towns has been the key feature of recent urbanization in India. The article first examines the population and municipal status dynamics, location and economic characteristics of census towns as well as their migratory and commuting patterns. The status and costs of providing basic amenities and social infrastructure are then analyzed. The paper emphasizes the contribution of contemporary theories that explain the growth of census towns and the role of secondary and primary data in capturing their characteristics. Taking advantage of the economic potential of India's urbanization as census towns will require the following: (i) the enforcement of reforms to empower Gram Panchayat for spatial planning and growth regulation; (ii) the discontinuation of subsidized infrastructure provision and charging development tax; and (iii) investment in decentralized infrastructure for more accountable and more efficient delivery of basic amenities.