Development town (Hebrew: עיירת פיתוח, Ayarat Pitu'ah) is a term used to refer to the new settlements that were built in Israel during the 1950s in order to provide permanent housing to a large influx of Jewish immigrants from Arab countries, Holocaust survivors from Europe and other new immigrants (Olim), who arrived to the newly established State of Israel. The towns were designated to expand the population of the country's peripheral areas and to ease development pressure on the country's crowded centre. The towns are the results of the Sharon plan – the master plan of Israel. The majority of such towns were built in the Galilee in the north of Israel, and in the northern Negev desert in the south. In addition to the new towns, Jerusalem was also given development town status in the 1960s.
In the context of the Arab–Israeli conflict, Jewish refugees from Arab states were initially resettled in refugee camps, known variously as Immigrant camps, Ma'abarot, and "development towns" prior to absorption into mainstream Israeli society.
The sudden arrival of over 130,000 Iraqi Jews in Israel in the early 1950s meant that almost a third of Ma'abarah dwellers were of Iraqi Jewish origin. At the end of 1949 there had been 90,000 Jews housed in Ma'abarot; by the end of 1951 this population rose to over 220,000 people, in about 125 separate communities. Ma'abarot residents were housed in tents or in temporary tin dwellings. Over 80% of the residents were Jewish refugees from Arab and Muslim countries of Middle East and North Africa. The number of people housed in Ma'abarot began to decline in 1952, and the last Ma'abarot were closed sometime around 1963. Over time, the Ma'abarot metamorphosed into Israeli towns, or were absorbed as neighbourhoods of the towns they were attached to, and residents were provided with permanent housing. Most of the Ma'abarah camps transformed into development towns. Ma'abarot, which became development towns, include Kiryat Shmona, Sderot, Beit She'an, Yokneam Illit, Or Yehuda and Migdal HaEmek.