This paper aiming at introduction of non-official settlement and its relation with developmental issues and plans in the recent years in Iran, studies reasons of this problem and paves the way for new concept of Endogenous Development. Also solution of internal empowerment is introduced in this paper to solve non-official settlement complication and other problems thereof.Internal empowerment is impressed by endogenous development which regarding concepts borrowed from sustainable development depends on using potential abilities and capabilities of non-official residents of cities in order to improve their life quality and residential conditions. Therefore related texts have been studied via analytical descriptive procedure and finally some principles have been proposed as solutions of non-official settlement complications.Non-official settlement is a collection of predicaments, problems, and also capabilities and facilities that present policies failed to benefit from its hidden facilities to overcome the problems. In fact disregarding these capabilities, methods of direct intervention of government (from omission, destructive and police intervention to housing, supplying land, and setting urban standards) were inefficient and had no benefit for the lowest-paid strata of the society and a true development can not be expected. For this reason, the following principles are proposed as guide principles in solving non-official settlement complication: - Revising policies and supplying urban spaces planned for low-paid strata: As non-official settlement results from lack of official, appropriate, and affordable space for urban low-paid strata, revising governmental-public sector’ s usual encounter with this event is principle.- The facilitator and guide role of governmental-public sector: in this case, duties fulfillment doesn’t mean direct satisfaction of all requirements and carrying responsibility of all affairs by governmental-public sector but it shall be fulfilled through facilitating procedures and comprehensive participation and empowering targeted societies in meeting their needs.- The mobilization of intra-societies resources and supported and directed self-help: Using human and social resources derived from the societies are the most important guide principles of empowerment and organization.- The right of residence and security in residence along with civil responsibility: Facing non-official settlement, policy making is not based on prevention of emigration and residence in city but it is based on getting citizenship duties and responsibilities fulfillment across to the residents to enjoy these rights - Strengthening economical-social foundations of family emphasizing housing and employment: housing is the biggest capital of families that its maintenance and improvement protects family’s integrity and improves manpower’s efficiency and its interconnection with the society.- Comprehensive, expandable and prospective procedure: economical-social development should be coincident with physical promotion and improvement actions and in this process, institutionalized capacity development will be possible by participation and empowerment of local societies.- Fortification, role and duties of local management institutes in the process of empowerment and organization of non-official settlement: organization and proportional management institutionalization to guide and support organization and planned settlement by mutual participation of these societies and local institutions (especially Municipality and Islamic City Halls) are necessary for sustainability of executive actions and plans and guaranty of their success.