The Municipal Plan proposes a policy for the development of the city towards the distant future. The Municipal Plan sets out where residential areas of the future and industrial areas are intended to be, where new roads and pathways should lie and which areas will be set aside as recreational areas. Reykjavík is a young city and has grown considerably in the past decades. 
The main emphasis of the Municipal Plan in the past years has been to create suitable conditions for its continuous growth; to ensure that the city is ready to meet the demands of anticipated growth in population and industry. But the Municipal Plan does not solely handle issues of location and size of constructions but also the shaping of new and older urban areas. What kind of neighbourhoods do we want to create? What kind of travel modes do we want to encourage? Which areas do we want to preserve? How do we ensure the environmental quality of the city, increasing its appeal for new residents and business? How do we make Reykjavík an even better city?
The new Municipal Plan covers the period from 2010 to 2030 and is a revision of the Municipal Plan for 2001-2024. The revision has been in preparation for the past years which has entailed various kinds of evaluation, assessment of options and public participation of both residents and interested parties
Public participation of both residents and parties of interest is a foundation for broader conciliation on the Municipal Plan. In the fall of 2009 when work on the Municipal Plan was formally introduced, public meetings were held in all city districts. Residents presented a number of ideas and perspectives at these meetings that have influenced the preparation of the Municipal Plan.
The first draft of the new Municipal Plan was introduced to residents in March and April 2012. Again, open meetings were held in all city districts to introduce the main objectives of the new Municipal Plan as well as the main changes proposed for each district in order to get the residents’ perspective. The draft for a new Municipal Plan was discussed in committees, boards and other institutions of the city during the winter of 2012-2013. A proposal for a new Municipal Plan was put to public notice during the summer of 2013 and subsequently approved by the Reykjavík City Council on November 26, 2013.