This study discusses issues for the institutionalization of the litigation system targeting the city planning decision as the object of administrative litigation by means of a review of a Supreme Court decision regarding a land readjustment project in Hamamatsu City. As the issues involved in institutional reform of the city planning litigation system, it points out (i) the necessity of judging the city planning decision of the project and zoning types as the administrative disposition, (ii) as for the zoning types, in particular, the necessity of the institutional design based on its inherent character, and (iii) the expansion of the kind and scope of legal protection of interests concerning the standing. Finally, this study argues for the necessity of expanding the object and content of the city planning decision and improving the legal role of the master plan as issues to be considered for reform of the city planning institution.