In absence of public sector intervention, Khulna City forms in an unplanned manner. Almost all infrastructure, services, major institutions and establishments, under public and private sector driven by demand. According to 2001 Master Plan, it took many years for density of a particular area to reach metropolitan average.

Khulna Master Plan 2001 presents that among five KDA housing schemes; none could reach optimum level of population density even after laps of substantial time. About 20 years after establishment of Sonadanga (first phase) Residential Area it reaches 37 ppa in 2001, while Muzgunni 13 ppa during the same period. Nirala, however, shows relatively better performance with a density of about 47 ppa within 18 years. The Khalishpur residential area reaches to its full capacity over a period of 40 years. The area was developed during the 1960s, when industrialization of the city booms.