A shanty town (also called a squatter settlement) is a slum settlement (sometimes illegal or unauthorized) of plywood, corrugated metal, sheets of plastic, and cardboard boxes. Shanty towns, which are usually built on the periphery of cities, often do not have proper sanitation, water supply or aqueduct, electricity or telephone services.

Shanty towns are mostly found in developing nations, or partially developed nations with an unequal distribution of wealth. In extreme cases, shanty towns have populations approaching that of a city^{[citation needed]}. As of 2005^[update], one billion people, one-seventh of the world's population, live in shanty towns.