Prior to VUDA, the Town Planning Trust (TPT) has existed since 1962, to implement developmental activities in and around Visakhapatnam. The TPT was upgraded and Visakhapatnam Urban Development Authority was constituted on 17th June 1978, under AP Urban Areas (Development) Act, 1975 with its jurisdiction extending over Visakhapatnam Municipal Corporation and four municipal towns namely Vizianagaram, Bheemunipatnam, Gajuwaka and Anakapalli including 287 villages in 178 Gram Panchayats, comprising an area of 1721 sq.km. Its functions are:

To coordinate various developmental projects for implementation of the Master Plan proposals.

It replaced erstwhile Town Planning Trust, a similar body constituted in 1962, which was operating in a limited area of Visakhapatnam municipal area.

VUDA, as part of its specified objectives, prepared a Master Plan for the entire Visakhapatnam Metropolitan Region (VMR) and done the Government of Andhra Pradesh approve it. The zonal development plans of Vizianagaram, Bheemunipatnam, Gajuwaka and Anakapalli towns have been sanctioned. In the peripheral area zonal development plans of Madhurawada, Rushikonda and Gopalapatnam have been sanctioned. VUDA also has the responsibility of coordinating and implementing important Urban Development Plans.

Co-ordination of development activities with various agencies and providing infrastructure facilities.

Formulation of projects in sectors and their implementation.

To regulate and control the development through statutory plans and other measures.

To prepare the Master Plan, Zonal Development Plans (ZDP) for the entire Visakhapatnam Metropolitan Region (VMR).

To achieve planned development by undertaking satellite townships and sites and services.

To undertake housing projects for various income groups under the Public Housing Groups with the financial assistance of HUDCO.

Providing infrastructure in the township areas, colonies and layouts undertaken by VUDA.

Allotment of houses and plots to various income groups.

Development of recreational facilities.

VUDA's funds include it's own revenue i.e. development charges, sale receipts on disposal of developed plots and built up houses / plots, rents etc, besides the annual grants and special grants for specific purposes from the state and central Governments, loans, debentures etc.,

The accountant general of Andhra Pradesh State has been the auditing authority of the Annual Accounts of VUDA and accounts of the authority are up to date.

Under sites & services VUDA has developed and allotted 10,519 plots in an extent of Ac.1718 to a tune of Rs.27.20 crores.

Under housing activity 10, 841 housing units have been constructed and allotted in an extent of Ac.479 to a tune of Rs.68.50 crores.

600 commercial complexes have been developed in an extent of 1,59,000 sq.ft. to a tune of Rs.5.70 crores

Rs.6.78 crores worth of road widening has been undertaken for a length of 119 kms.

Facilities have been promoted for cultural and community activities for the benefit of the people in VMR.

The concept of Service Centers has been initiated and 36 service centers with site in charges were started in April 2003, covering all layouts and housing colonies of VUDA, to provide single window services to its users.

VUDA on Wheels was introduced in April 2003, to provide services to its users at their doorsteps.

The concept of Project Managers was introduced and each project of VUDA has been kept under the care of an efficient officer, which ultimately resulted in extending the best services to users.

The Draft Master Plan for VMR-2021 has been made open to public and interactive sessions were conducted with stake holders such as local bodies, industries, experts, fishermen associations, educational institutions, NGOs, peoples organizations etc., to finalise the Master Plan.

Field Offices were opened at Vizianagaram, Bheemili, Gajuwaka and Anakapalli covering all the four zones of VMR to provide single window services to its users.

Sri G.Venkatram Reddy, IAS, Vice Chairman introduced an innovative programme "Meet the Vice Chairman", to enable the users of VUDA and general public to get their grievances redressed in a speedy way. This programme is conducted on every Monday from 10.00 A.M to 2.00 P.M at VUDA Administrative Building, Siripuram, Visakhapatnam, which is the head quarters. The Vice Chairman himself along with all the heads of wings, VUDA, presents in the programmes to receive and dispose grievances.

The Local Bodies existing in VMR have been authorized to act against unauthorized layouts.

The Grama Panchayats in the limits of the VMR have been authorized to approve EWS layouts under WAMBAY (Weaker Section Housing Scheme) to save delay.

All proposals to VUDA are routed through Gram Panchayats / Municipalities / Corporations.