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A great deal of credit is due to Mr. George Finley— now Manager of the Ajax Development Project, at that time District Rentals Officer of the Corporation. It was he who first appreciated the situation and brought forward the idea of developing a planned community on the site of the old war plant. In 1948 the University gave notice of its intention to withdraw the following May. It was then decided to place full control of Ajax in the hands of the Housing Corporation. Its status became that of a "Federal Island" within the boundaries of a rural township. Certain arrangements were already in effect, with respect to the sharing of school costs and social services. These had been worked out on a mutually satisfactory basis after the original agreements with Wartime Housing Limited had proven inadequate. Ordinary municipal services were on an operating basis and the community was served by the Ontario Provincial Police. In accepting responsibility for the future of Ajax, Central Mortgage and Housing Corporation realized that here lay an unusual opportunity for the practical application of modern planning principles. The strategic location of Ajax, with its road and rail connections and its existing services and buildings, presented great possibilities for industrial development. This project, involving a multitude of problems only indirectly related to housing, was of a scale and character (beyo)nd the previous experience of the Corporation. (Th)e "Ajax Advisory Committee" was set up to determine matters of policy, to shape the administration of the Project, and to guide the Manager in his administrative and promotional duties. The Committee is composed of Corporation officials from Head Office and the Ontario Regional Office. The Ajax Development Project is administered as a component of the Ontario Region. The Advisory Committee appointed the writer as Planning Consultant, to lay out a general plan of the area, to make detailed plans for new housing projects, and to advise on matters affecting physical development. The Consultant sits as a member of the Advisory Committee. It was decided at the outset that Ajax would not remain a "Government Town", but that the Corporation would co-operate with Provincial authorities in establishing full municipal government as soon as it became feasible to do so. The problem was a peculiar one. Ajax already possessed municipal services comparable to those of a sizable town, plus a great network of roads in surprisingly good condition—much of which could be incorporated into a new plan. Yet the small population could not possibly maintain these assets nor undertake promotional work during the intensive period of development which lay ahead. It was necessary to decide upon the best means of (bri)dging the gap between Ajax the Federal Island and Ajax the self-governing municipality. A number of alternatives were given serious study by the Advisory Committee, with the co-operation and assistance of the Department of Municipal Affairs and the Department of Planning and Development of the Ontario Government. It was finally agreed that the creation of an "Improvement District'' might offer a workable solution. An Improvement District is governed by a board of Trustees, who exercise the duties of an ordinary Council, as well as those of the School Board, Utilities Commission, and all other municipal authorities. The Trustees are responsible to the Provincial Department of Municipal Affairs. They are appointed, not elected, and consequently the inhabitants have no direct voice in local government. The Trustees, in discharging their municipal duties, do not officially represent any particular social group or business interest. But in practice, the selection of the Trustees usually reflects the principal elements in the Community. The idea was originally proposed to fit the requirements of mining towns and other isolated communities not sufficiently mature to qualify for self-government. A number of such Improvement Districts exist in Ontario, but the peculiar characteristics of Ajax place it in a class by itself. The Improvement District originally proposed at Ajax included a considerable belt of farm land. From the planning point of view, this offered the obvious advantage of bringing a larger area under control of our zoning regulations. But the idea met with strong opposition, mainly from the rural population, and subsequently the application was withdrawn. Several public meetings were held to clarify misunderstandings and to acquaint the people more fully with various aspects of the problem which had to be solved. Boundaries were re-drawn to include only Crown Land owned by Central Mortgage and Housing Corporation, rounded off by a small piece of adjoining territory. The second application met with more favourable response. On the first of November 1950 the Improvement District of Ajax was brought into being by order of the Ontario Municipal Board. The three important components of the Ajax community were recognized in the composition of the Board of Trustees: Chairman: B. DeForest Bayly (Bayly Engineering, Ajax); Vice-Chairman: John Mills (long-time resident); Member: W. W. Rideout (Assistant Manager, Ajax Development Project, C.M.H.C.) The population of Ajax, now about four thousand, is a rather large number to be governed by appointed officials. It was of some importance that the Trustees should be men enjoying public confidence and respect. The success of Ajax as a municipal entity will depend to a great extent upon their wise handling of a multitude of local problems. This of course is an interim measure. It is hoped that