The Government has framed building rules for panchayats to streamline development activities and check exploitation of natural resources an expert team of the Town and Country Planning Department had already assessed the density of population, land and other facilities in the panchayats. The draft floor area ratio norms and the rules for issuing building permits had been drawn up on the basis of the assessment. The floor area ratio and permit norms will be more flexible than that of the Kerala Municipal Building Rules. The Local Administration Department will adopt a liberal approach to granting building permits in tribal hamlets and habitats.

The Government had already enforced the municipal building rules in 200 out of the 999 panchayats, considering the rapid pace of urbanization in different parts of the State. This included the 12 panchayats that adjoin Kochi Corporation and Kazhakuttam in Thiruvananthapuram. Thrikakkara panchayat in Kochi and Kazhakuttam are poised to become the hub of IT industry. Builders within and outside the State had already purchased land to construct residential and commercial buildings in these panchayats.

The Government had enforced the building rules for Builders Kerala  in select panchayats to regulate construction and other development activities and avert drinking water and space scarcity experienced in Kochi, Thiruvananthapuram and Kozhikode corporation limits. Infrastructure facilities in almost 100 panchayats were much more than in municipalities and some of them were evenly matched with corporations like Kollam and Thrissur. Karunagapally and Kottarakara in Kollam district and Kattakada, Kilimanoor, Kallambalam and Venjaramoodu panchayats in Thiruvananthapuram were some of the panchayats that had grown faster than the neighbouring municipalities.