The study investigates the neo-customary regulation of mixed-use development and tenure in informal development around public housing (RDP housing) developments in Cape Town townships, South Africa. Informal mixed-use development occurs outside the direct influence of the state but is informally regulated through customary land management systems (CLMS). The study used an ethnomethodological research method to analyse these problems using in-depth interviews. The research results indicate that the street committees, business forums and taxi associations, all local CLMS organisations, self-regulate mixed land uses and tenure informally in the region. The street committee system replicates many other functions of local authorities, limiting the infringement of property rights and equitably distributing income. However, since membership is mostly exclusive to property owners, this system disincentivises active property development in disputed properties, enables land usurpation over property boundaries and does not accommodate tenants to an equal degree to property owners.