Abstract The present research explores how the urbanization affects the delivery of high-quality merit goods by local authorities, based on Nanded Waghala City. The city has seen a dramatic increase in its population, growing by 56.83 percent from 2001 to 2011, which highlights the strain that urban growth places on public services and infrastructure. The paper evaluates the trends in property growth, educational infrastructure, healthcare facilities, and water storage capacity between 2011 and 2017. The findings indicated a significant rise in all types of properties, with an average growth rate of 6.79 percent for all properties, mainly due to an increase in residential and commercial areas. The development of educational facilities has been somewhat limited, with an average growth rate of 8.3 percent, but certain areas like college and technical education have remained stagnant. Healthcare services have expanded considerably, especially in areas like Ayurvedic clinics (growth rate of 25.7 percent) and gynecology services (growth rate of 12.3 percent), showing a growing need for specialized medical care. The statistical analysis reveals a clear link (R² = 0.998) between the growth of urban areas (population and property growth) and the provision of essential services like education and healthcare, although the significance of some factors is still uncertain. Additionally, the capacity of the city's water storage facilities has been increased, meeting the growing demand for water among the population. This research highlights the difficulties local authorities encounter in balancing the growth of cities with the provision of merit goods like education, healthcare, and water supply.