Since independence (1947), foremost among the issues related to the growth of Bombay has been the decision to build New Bombay, a new city on the mainland across from Bombay island. In this paper, I examine first, the emergence of the idea of New Bombay and the interest groups who influenced the planning process. Secondly, I examine the actual achievements of the New Bombay project and the disjuncture between planning and reality. The New Bombay case shows clearly the way the political environment can influence the planning process. Confronted with the demands of different interest groups, the state in its urban planning opted for a solution which would accommodate all of them. In the process, many of the original objectives of building the new city have remained unfulfilled.