In 1915, Robert E. Park and E. W. Burgess introduced the idea of "neighborhood" as an ecological concept with urban planning implications . Since then, many concepts and ideas of a neighborhood have emerged. Milton Kolter defines a neighborhood as, “…a political settlement of small territory and familiar association, whose absolute property is its capacity for deliberative democracy.” While most neighborhoods are difficult to define geographically, anyone who lives in an urban setting relates to an area that they call their neighborhood. As such, it is a useful level to engage in planning practice.
Neighborhood planning deals with a level of planning greater than household size but smaller than that of a city. In fact, one of the first steps in planning for a neighborhood is to define the boundaries of the neighborhood. This process can sometimes be problematic. It becomes difficult when some areas do not want certain streets or houses to be included in their neighborhood boundary. On the other hand, it can also be a problem if more than one neighborhood district attempts to claim a certain street or group of homes. Two less problematic neighborhood boundary definitions are based on natural objects like rivers and parks, or on dividing the area based on census information. If all else fails, public meetings and surveys can help the decision making process.
After the boundaries of the plan are established, officials need to decide how to get the neighborhood involved with the planning process. Most people wrongly assume that a neighborhood plan will be done democratically. In reality, a city official may do all of the planning with minimal contact or input from the residents. The plan may also be done by a small, self-selected group of residents who ignore input from others in the neighborhood. Either way, without involvement of as many neighborhoods as possible, the outcome may lack critical information and perspectives and thus not fully represent the desires of the neighborhood residents. This may create problems for the community.
Neighborhood planning can work with all scales of area, from city neighborhoods to rural areas. In the UK neighborhood planning in rural areas is led by Rural Community Councils who can assist rural communities or parishes in creating Parish Plans or Village Design Statements; a form of Community Led Planning. Other established methods exist including Market Town Initiatives. Neighborhood plans are a way of empowering local residents to take responsibility for their areas.