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This report consists of four sections: 1) An overview of issues and challenges in managing urban flood risks which reviews socio-economic impacts of flooding. Impacts of urban development on flood risks are described in the context of adapting to climate change; 2) A synthesis of recent developments in innovative strategies for effective urban flood management; 3) Case studies of innovative strategies for effective urban flood management; 4) Policy options derived from collaborative work on urban flood management and the regional expert consultation. The 'adaptive management framework' is described as an approach to minimizing urban flood risks. Application of the framework improves understanding of each local situation, the effective use of resources and the flexibility in dealing with diverse situations. The concept of 'transitioning towards water-sensitive cities' offers guidance for urban development planners in making informed decisions on investments, capacity development and institutional reforms that lead towards sustainable urban water management. The report also highlights the importance of an enabling environment that is characterized by conducive socio-economic conditions, effective governance and institutional structures, resilient communities, and policy frameworks for disaster mitigation in general and urban flooding in particular. Case studies from the region illustrate different development scenarios in policy formulation for effective urban flood mitigation. Policy options for effective urban flood management are presented in the final section as contributions toward implementation of the Hyogo Framework for Action in Asia and the Pacific.