The relationship that exists between real estate development planning and public utilities is often not easily appreciated. What is glaring most of the time is the inadequacy of these utilities. However, it is by means of regulations and adherence to planning that adequacy of these utilities can be ensured. The paper examines the current innovation in land subdivision in government residential schemes as well as the challenges associated with it. Issues concerning land subdivision are discussed with respect to residential land use. The paper also presents the challenges of further division of land for residential development. More efficient designs, increase the existing infrastructural facilities and adjustment of the size of plots are recommended to ensure effective use of the available space. Finally, it is emphasized that the issues of implementation should be taken much more seriously.