The term ‘governance’ is used in a variety of disciplines such as economics or life sciences. In international development the concept culminated in the idea of ‘good governance’, defining principles for a sustainable political process. The report describes a ‘broad consensus’ that governance – in contrast to government – incorporates the the variety of actors taking part in decision making and taking. It refers to the relationship between civil society and the state – the processes and structures arising from this relationship. Recognising the massive challenges faced by modern cities, sound urban governance is believed to hold the key to these problems. This study highlights the interrelation between (good) urban governance and city development and introduces two indexes depicting these concepts.