The political changes in South Africa after 1994 necessitated that the Bantustans, the main servers of apartheid planning, be re-incorporated into the mainstream of South Africa, implying the transformation of apartheid residential planning. Since then there has been much speculation about the type of transformation that would be implemented in the Bantustans to effect change in a non-racial South Africa. The aim of this paper is to analyze the effects of post-apartheid territorial restructuring in the former South African Bantustans. Examining and elucidating the manner in which the diverse social, economic and political factors have manifested themselves in the process of transformation of spatial residential planning in Umtata (the former capital city of the Transkei Bantustan) since 1994 is the central theme of this paper. Using property registers together with changes in legislative policies and land ownership, the transformation pattern was analysed in the former Bantustan capital city (Umtata). The findings indicate that the new South African policies and development strategies have been partially successful in eliminating the incongruencies of the past with regard to access to housing in Umtata. More critical is that this paper suggests that there still remains a greater challenge lingering from the influence of the Bantustan government in the city.