Katwa has emerged as a Municipal town during the year 1869 with a total area of about 1 sq km and 5000 population. Upto March 1965 this town consists of only four wards. and after March 1965 it was 
consists of 14 wardsa and presently after 1995 this municipality consists of 19 wards, covering an area of 7.94 sq km and with a population of 71589 according to census 2001. Katwa was a rural based urban agglomeration. But owing to its unique location and of commercial importance and also being the sub divisional head quarters of BUrdwan District, from early seventies, fast urbanization has been noticed. Thus owing to such a congenial environment, peoples from the neighboring districts have chosen this town as their permanent residence. Several hundreds of people from the outside are coming daily for searching their livelihood. This fast pace of urbanization has thrown a serious challenge. This has put a tremendous pressure in the existing infrastructure and public services, growth of slums has also gradually been increased.
The 74th constitutional amendment act 1992 - the ULBs have been given a constitutional and autonomous status - a great step forward towards decentralization. The said act supported by the state municipal act empoweres the ULBs to draw up bring up multidimensional plan to combat such challenges evolved through fast urbanization covering environmental. social and economic areas.