Transit-oriented development (TOD)—a planning strategy focused on building compact, mixed-use neighborhoods with access to high-quality public transport and mobility options—is key to sustainable urbanization. However, TOD can be exclusive in its design and implementation, leading to the displacement of low-income residents and the gentrification of neighborhoods.

Developing more inclusive TOD processes can help urban communities mitigate potential negative outcomes. This working paper examines the role good governance principles of clear institutional arrangements, policy alignment, public participation, transparency and accountable can play in TOD. Using a new “capacity-to-act” mapping methodology to sketch out governance landscapes, the paper analyzes challenges to inclusive TOD in three Brazilian urban redevelopment case studies and identifies good practices that cities can adopt to avoid inequality and exclusion in TOD.