Town planning is the issue that both Karksi and Rujiena municipalities need to deal with in the nearest future as big crossing-roads that go through the towns are being renovated. Renovation of the roads alters the looks of the small towns quite a lot and requires new planning and in the future also reconstruction of the areas along the road and town centres.Town planning designing and reconstructions make the towns more functional for locals and visitors and more attractive for tourists. The towns are planning to advertise their developments widely and that is why an idea of a new tourism route development came into force. This new cross-border tourism product will help to attract more visitors to the area also create more contacts between the citizens of the border area. In long terms increasing the number of tourists will create new jobs and opportunities for local people and benefit to the economic development of the area. A very important aspect during the project is involvement of local people through social discussions and project weeks for schoolchildren during the detail planning process regular meetings and discussions between the two municipalities and the local people during the whole project. The activities also include study tours in Estonia and Latvia for experience exchange purposes a seminar about town planningand preserving the cultural heritage for town citizens and making a design project competition. Achievements: Progress reportProject Opening meeting was held on September 15, 2005 in Karksi-Nuia. 15 people from Estonia and Latvia were present, project presentation was made, Partnership Contract was signed and Project Steering Committee formed. After the meeting a study-tour to Estonian small towns, where town detail plannings have been carried out recently, Otepää and Põltsamaa, was made. The second study-tour was made to Latvian towns that have experiences in detail plannings and town development - Valka, Smiltene and Valmiera on September 22, 2005. After the study-tours Karksi and Rujiena started their detail planning processes, collected price-offers and had negotiations with professional planners. Also topographies/ geotetic surveys were ordered for the detail planning areas. Project weeks in Karksi-Nuia and Rujiena Schools were organised, where students collected information from their parents and relatives and expressed their thoughts about town development and development of their home-region in general and gave a lot of ideas that can be implemented in plannings. 2 big biking days were held in August 2006 to introduce the new cross-border tourism route between Karksi-Nuia and Rujiena for the public and generate more contacts between people in our target region. New resting (picnic) places were created along the road, 4000 tourism maps were printed with information about the road and the attractions and big tourism maps were put up in towns and crossing roads. Town planning, making our town centres and green areas nicer and more convenient for visitors, together with development of a new tourism route between Karksi-Nuia and Rujiena, helps to attract more visitors to the area and develop the tourism-sector in the area. 7 project team meetings have been held during the project and a lot of local meetings, communication between project partners has been constant and very effective.