As part of the post-Soviet transition of civil law and economic relations, cities of the Russian Federation have sought to reform the system of urban land use and development regulation. Based on changes in the laws on urban development and the Land Code, the reforms have followed two approaches. Some cities have adopted the system of 'zoning' to create pre-defined land uses and parameters of development which apply uniformly to all land parcels in each urban zone. Other cities have retained the system of 'site-specific' definition of uses and development parameters. It appears that the 'zoning' system is more responsive to the new conditions in which private individuals, enterprises and institutions initiate development projects and provide capital funding, in response to market conditions. This can be shown by looking at the process of project development in the city of Novgorod (the Great), where Novgorod's reforms appear to offer to developers/investors an enhanced legal position, a lower level of risk and simpler and more cost-effective methods of acquiring land and development permits. This favourable situation appears to have made the city one of the most attractive locations for private investment in the Russian Federation.