The purpose of this work is to analyse both the existing planning system in Nepal and how tourism affects the local indigenous population. Furthermore it will try to understand how tourism can be used for poverty alleviation and sustainable development of infrastructure through planning. A study of planning theory has been interspersed with studies of the concept of sustainable development, planning, tourism, and infrastructure while and trying to find linkages between the fields of knowledge. Informal planning is a key function that occurs when the existing planning does not work. Can this form of planning be adapted and accepted as the official planning? Through case studies in three different locations in the Kaski district in Nepal the theoretical framework has been used to analyse how tourism is used and how planning works. The areas were all chosen because of their different preconditions and location. The study analysis both urban and rural areas, which have different challenges when working with achieving sustainable development. The result of the studies shows on a possible connection between sustainable development and infrastructure with tourism as an engine in Nepal. Through studies of literature focusing on planning challenges in Africa knowledge was extracted that could be used and adapted to local conditions in Nepal. But the studies also found grave problems with the existing planning system in Nepal - it is not working as the local administration is not capable of fulfilling its’ responsibilities towards the local population. If tourism is to be used for creating sustainable development in Nepal the regulatory and administrative system has to be adapted to the local context.