One of the dilemmas at the heart of the new urban agenda globally is whether population growth should be accommodated by extensive or intensive urban development. Both approaches have gained support in South Africa in recent years, albeit in different parts of government. The paper provides a critical and constructive assessment of what lies behind these contrasting agendas. It considers the positive and negative features of mega-projects and urban consolidation, with an emphasis on their implications for urban efficiency and social justice. It concludes by stressing the need to reconcile these policies in order to avoid wasteful duplication and damage.Keywords mega-projects and sprawl, urban consolidation and integration, urban efficiency and inclusion, urban policy and planning One of the dilemmas at the heart of the new global interest in urban policy concerns the extent to which population growth should be accommodated by enlarging urban areas or by using existing areas more intensively, i.e. by growing outwards or upwards (Buckley et al., 2015;UN-Habitat, 2013Woetzel et al., 2014). Outward or extensive growth can be achieved through planned urban extensions or new satellite cities and towns. More intensive growth can be achieved through infill projects on vacant land or higher density redevelopment of existing buildings. This dilemma is related to another difficult trade-off between preparing for new urban growth on greenfield sites, and revitalising older urban areas, including upgrading informal settlements.The arguments for supporting extensive urban growth are that physical projects are more straightforward to execute on undeveloped land, innovation in urban design is easier because there are no vested interests to resist change, and a well-structured urban form can be created (Angel,