This paper concerns the illegal peripheral subdivisions in Dhaka city, Bangladesh. These subdivisions were a cheap solution to the demand for land, thereby housing, for the urban poor. With ascent on the enabling policy, Roy (2009) refers the peripheral subdivisions as ‘privatization of informality’ and wealthy command infrastructure, services and legitimacy that come to be designated as ‘formal’ by the state. Legalisation is selective for the socio-economically and politically powerful land developers. The land price of these legal subdivisions is high. Considering the land price, this paper argues that the urban poor have little to no access to the legal subdivisions in Dhaka. Policy suggestions are made at the end of the paper.