Illegal occupation of urban land in Brazil is a widespread phenomenon. Slum dwellers are excluded from the attributes of urban citizenship although they provide the labor force required by low productivity urban services needed by cities. Illegal settlements generate multiple problems for the rest of the city . Its solution is of key relevance to the city in general but also provide an opportunity for the social and economic advancement of slum dwellers. The programs required to attain these results are complex and difficult to implement underscoring the challenges countries will face to attain the Millennium Development Goals of reducing the population living in slums.