The article elaborates on efficient use of urban land plots. Establishment the boundaries of settlements and towns (further - delimitation) as a tool for effective land use and allows to set limits for land use management. A research objective is identification of the existing problems connected with establishment of boundaries and their decision. According to information for the period 2014-2015 the area of land of settlements has increased. This and some other the facts point to process of globalization and urbanization. Therefore now problems of effective land use of settlements have to be solved immediately. The land tax is one of mechanisms of effective management of land resources. Land taxes received by the consolidated budget of the Russian Federation for the period 2012-2015 is less than 2% of all taxes. Whereas in some countries the taxation of real estate ranges from 40 to 80% of the local budget. Low level of taxes is explained also by the fact that the system of territorial planning doesn't work in full power. At the same time development of documents of territorial planning is the first, fundamental stage of process of establishment of borders. The article analyses the current process of establishment of boundaries. The authors analyzed the results of the implementation of territorial planning in practice. The identified causes of the most frequent cases of violation of the establishment of boundaries. The major problem is defined which interferes with process to establishment of boundaries - crossing of boundaries with borders of earlier considered land plots. The study was conducted by carrying out the experiment on the boundary - d. Kapustino g. o. Mytischi, Moscow region. The estimation of the new norm of the law «About the state registration of the rights» which has to resolve a problem of crossing of boundaries. The result of this study are possible solutions to solve the connected problems. The conclusion - it is necessary to consider the shortcomings stated above and to execute improvement of methodology and process of establishment and the description of such boundaries.