This paper presents and discusses primary data from a survey of 1,070 households in four poor settlements in Mumbai comprising slum-and pavement-dwellers and squatters on the living environment and health conditions. The study attempts to examine the consequences of socio-economic and environmental factors in terms of income, literacy, sanitation and hygiene for morbidity. The needs of the urban poor and their priorities are seen to be hierarchial. They need first assurance of being allowed to stay where they are and then provision of basic amenities of toilets, water supply, sewerage and drainage.