The population growth rate of Mumbai city within Mumbai Metropolitan Region shows a declining trend, while that of other areas has been increasing since the past few decades. Kalyan and Bhiwandi are two such developing nodes within the region and the villages around them are also fast urbanising. This study analyses the polycentric governance structure of Mumbai Metropolitan Region with respect to the policy provisions at national, state, and local levels and points out the weaknesses in the system by following an inductive approach. Documentary analysis and interviews with government officials and experts from various related organizations form the base for institutional mapping, and the evolution of the existing regional planning structure is also elaborated upon. The study reveals the hierarchy and inter-relations between the organizations involved in the urban and rural centres within the region. Overlapping, complementing, or conflicting objectives and differences in accountabilities are the major issues discussed to highlight the inefficiencies in development planning and management. In doing so, the study draws theoretical conclusions for overcoming the deficiencies in the system through a reciprocal relationship between the governing bodies, both vertically and horizontally, to make the governance framework more effective.