Urban development and the role of larger urban areas represent the basis of this diploma thesis. Act on Regional Development of the Republic of Croatia defines larger urban areas. The aim of this work is to analyse and present the importance of the development of the larger urban areas, to compare larger urban areas in Croatia and to explain in more detail the development on the chosen example, larger urban area of Pula. This thesis describes the historical development of cities in brief, presents an overview of the urbanisation processes in the world and in Croatia. Strategic approach to urban development is analysed in the separate chapter, including legal framework which is important in defining urban areas and managing urban development in Croatia. After that, ten Croatian cities are compared, according to their similarities and differences based on particular socio-economic indicators. Their role in regional development is presented as the results of the analysis. Differences between cities on the Adriatic and Continental Croatia are also compared. The last chapter, before conclusions, analyses the characteristics of the Pula larger urban area, with guidelines for future development. This work confirms that there are differences between larger urban areas, they attract population with their functions and services which they provide and that larger urban areas can have a significant role in the development of a broader, regional surroundings. Managing fully integrated development of the larger urban areas can be useful for smaller cities in the surroundings of the central urban areas, but also for central cities to prevent possible unfavourable effects of the accelerated urban development.