The motivation for this paper was to find ways to lessen and, where possible, to eliminate barriers in the way of trade in Lahore region. For the purpose of this study, Lahore region means an economic region including Lahore, Murdike, Kamoke, Gujranwala, Sialkot, Sheikhupura, Nankana Sahib, Faisalabad and Kasur. Strong economic ties exist between Lahore and these cities. These ties warrant the understanding of trade at regional level. Working to remove barriers to trade at regional level is likely to offer greater opportunities for social and economic development of the Lahore region. The research for this paper was completed using a number of participatory research methods. Since disaggregated data on urban economy of Lahore region were not available, the participatory research methods helped us improve our insight of trade processes in Lahore region. The solutions to the barriers of trade have been designed in the light of the research and from the case studies of local economic development experiences in many countries.