The article discusses the economic and legal challenges in managing the development of urban areas in Ukraine. It looks at the factors that lead to the formation of urban agglomerations, the resources and potential they possess, and the importance of infrastructure in their growth. The study identifies the need for effective management to address economic, organizational, and legal issues in urban agglomerations. Key functions for managing urban areas include planning, organizing, coordinating, and monitoring. The interaction between local communities within urban agglomerations is crucial for their development, and this interaction is guided by laws.