The difficulties encountered by the new immigrants gradually disappeared as the city improved and became economically stable. Since private initiatives had little impact on the city, most of the achievements during those years can be attributed to the Municipal and Government institutions operating in the city.

Initially, the municipality demolished many of the buildings in the “dangerous” neighborhood. The evicted residents were moved to safer homes. The demolition of the neighborhood led to a reduction in crime in the city. Many of the neighborhood's residents with criminal records left the city.

Some of the evacuees were housed in new housing projects built by the housing companies Neve Oved, Amidar, and the Housing Department. In the first phase, until 1953, about 200 one- and two-story buildings were constructed. These buildings provided 750 housing units. The site on which the new neighborhoods were built was covered with dense olive groves, and therefore some of these housing projects were named “Neve Zayit” (Olive Grove). The new neighborhoods were equipped with lighting, and sewage systems were installed. The new neighborhoods were designed according to a master plan drawn up by architect Michael Bar in 1950. Changes were made to this plan at the end of the decade, and it was adapted to the changing conditions and needs of the city. According to the plan, the area was divided into quarters according to the different functions of each neighborhood. This prevented the residents of the new neighborhoods from suffering severe disturbances caused by their proximity to the industrial area.

From: Vakar, Ora, 1977, Lod - Historical Geography, published by Goma and the Lod Municipality - Cherikover.

The water supply problem, which plagued the first settlers, was solved with the establishment of an independent water plant, which began to be built in 1953. In May 1954, a water plant was inaugurated, supplying 360 cubic meters per hour. Water was pumped from the wells using modern methods, and storage pools and facilities for removing sulfur from the water were installed near the wells. Pipes branched off from the storage pools and carried the water to the homes, making life easier for the residents.

Garbage was collected using garbage trucks, and regular cleaning services were provided. Day by day, the city streets became cleaner. In addition to housing, the municipality was concerned with improving the city's appearance. Green belts and urban parks were planned.

In the early 1950s, a large park was planted in the presence of then Prime Minister Moshe Sharett, including a memorial to the fallen. Youth Centers began to be built in the city, where the Gadna, Hashomer Hatzair, and Bnei Akiva youth movements operated.

The establishment of the Aircraft Inspection Institute, the expansion of El Al, which employed many workers from Lod, and the establishment of large factories such as “Shamani Lubricants” and the “Sufra” paper factory expanded the city's economic base.

From: Vakar, Ora, 1977, Lod - Historical Geography, published by Goma and the Lod Municipality - Cherikover.