After 1991, the dismantling of many elements of the Soviet system (including the compulsory work placement of young graduates, heavily subsidised transport and energy tariffs) reshaped Kazakhstan's urban system, concentrating population in large cities. Along with official data based on the administrative definition of urban areas, it introduces the functional urban areas (FUAs), w'hich offer a new picture of its urban agglomerations, based on settlement patterns and travel-to-work commuting flows. This chapter then reviews the links between urbanisation and economic growth and key economic challenges related to cities (including singleindustry towms and attracting foreign investments).