ABSTRACTThe relocation of Surakarta City street vendors from Taman Monumen Banjarsari to Pasar KlitikanNotoharjo is one of the innovative urban development policy focusing on cultural values aiming tostrengthen local ingenuity as the city’s economic power. This study examines how the innovative policywas implemented successfully. The study showed that the success of the innovation was due to (1) theinitiative and commitment of the mayor, (2) a shift in the mindset, creating trust in the management ofstreet vendors, (3) bureaucratic reform followed by legislation of supporting documents, (4) continuousand integrated mechanism of implementation, and (5) budget cuts and focus to spending with highimpact to welfare. The creation of the street vendor management manual should assure thesustainability of the innovative policy for the next term of governance.Keywords: sustainable development, innovative policy, government administration