Informality is, by definition, a question of the relationship of individuals and communities with the law : informal being in some way not in compliance with recognised law. Informality is frequently the result of inadequate, inappropriate or ineffective policies or legal frameworks that regulate activities based on assumptions regarding the socio-economic environment that do not reflect realities on the ground. This results in a situation in many cities where the laws, institutions, and policies governing economic, social, and political affairs deny a large part of society the chance to participate on equal terms. It is important to note that informality does not means that there is no system, merely that what does exist is not formally
recognised. Informal local norms and institutions, including those of a traditional or customary nature,govern lives and livelihoods.