Bahawalpur City was once the capital of ex. Bahawalpur State. The residential development in Bahawalpur rapidly geared up in the beginning of 20th century. The main objective of the current research was to explore the housing development in a brief historical perspective and examine the legal status of housing schemes with the bylaws set by authorities timely. Primary data had been collected through personal investigation and interviewing with Tehsil Municipal Administration (TMA) of Bahawalpur City's officials. Whereas, secondary data mainly based on Punjab Private Site Development Schemes (Regulation) Rules 2005 and Punjab Private Housing Schemes & Land Sub-Division Rules 2010. TMA city has followed these planning standards to cope up the rapid development of un-authorized housing schemes. Majority of the illegal housing colonies more or less deviate from these rules and bylaws i.e. about 31 colonies that have been built during 2000-2005 and covered 379 acres of precious arable land have opposed the land development rules 2005 in many respects. Similarly, in 2011 only one colony was meet the criteria of Punjab Private Housing Scheme & Land Sub-division Rules 2010. Thus, the construction of illegal housing schemes still carry on and creating numerous sorts of implications of food shortage and environmental deterioration.