City as sn integrated system of natural and human, is the most effective space to provide life service and facilities for human societies. With regard to the complexity and variety of the problems pertaining to cities, to manage them, an evolutionary, high quality, unified, comprehensive, and based an participation management is needed. Slum dwelling is a complicated urban and social problem that seems to be challenging most of the cities in Iran. Khorramambad, a Midwest city in Iran, in the recent years has undergone extreme changes in the structure of its social, cultural, and economic body. Slum dwelling is an outcome of such changes. The present study has tired to evaluate the role of the urban management in forming such neighborhoods_ specifically Darreh Garm neighborhood-and the influences of them on the activities of municipality as challenges ahead of the urban management. The results Show that the concentration of investment in newly born neighborhood to the north and the south of the city like Goldasht neighborhood, in comparison with old neighborhoods such as Posht_ a_ Bazaar, Baba Taher Doorway, and Zeid Ibn Ali as the primary cores of the city, along with the lack of balance in the supply and demand process, inflationary raise in the price of land and urban facilities, unclear role of urban management due to the interference of the City council in the activities of municipality, the interference of non experts in planning and performing urban projects, the role and function of various official authorities, disability in the sound management of organizational resources( including human resources management, financial resources management, etc) has intensified the expansion of this phenomenon in Khorramabad.