In the last decades important transformations can be observed in Chilean intermediate cities. The politics of deregulation, especially in urban planning, a consequence of the predominating economic model of neoliberalism, the opening to the global market based on the exploitation of natural resources, but also the increase of the national income may be regarded as the main drivers. However, it must be stated that the economic growth and dynamics did not benefit to all inhabitants, and have enlarged socio-spatial segregation and social disparities. The Chilean state implemented measures to minder the social effects of the economic model which on the one hand demonstrate excellent quantitative results, but under a more qualitative perspective deficit in the quality, effectiveness and organisation of the urban planning and development policies are still existing. In a case study it will be demonstrated that new circles of poverty and ghetto-like segregation may occur.