This study investigates the relationship between Revenue Generation (Independent Variables) and Urban Development (Dependent Variable) in Local Government Authorities, with Kisoro Municipality as a case study. Urban development, in this context, refers to the progress and expansion of urban services, infrastructure, and economic activity that promote human welfare and spatial transformation. On the other hand, revenue generation includes the mechanisms and capacities of local governments to raise funds from internal sources (such as taxes, fees, licenses) and external sources (such as grants and transfers) to finance public services. The independent variables in this study are: (i) Revenue Sources, operationalized by volume of income generated; (ii) Revenue Collection Efficiency, measured by systems used, taxpayer compliance, and staff capacity; and (iii) Revenue Utilization and Accountability, assessed by how collected funds are allocated to urban services and whether transparency and citizen participation are observed. The dependent variable, Urban Development, was evaluated through three key indicators: (i) availability and quality of physical infrastructure (e.g., roads, drainage systems), (ii) service delivery outcomes (e.g., waste management, water, education), and (iii) local economic growth (e.g., small business activity, job creation). The chapter proceeds to give a comprehensive background of the study, beginning with the global perspective, narrowing through continental and national levels, and concluding with a focused understanding of Kisoro Municipality. Emphasis is placed on how challenges in urban development, particularly in developing economies, are rooted in the capacity and efficiency of revenue generation systems.