This paper aims to show the necessity of the second urban improvement (Shikukaisei) in Gifu around the end of Meiji period (1910-1912), focusing on the operating bodies and organizations around them and their financial resources. The contents of this urban improvement was already known as the widening of the streets in Gifu City, funded by the Mino Electric Tramway. However, from a close analysis of the remaining primary sources, the conflicts between Gifu City and Kozuchi Town, and between the northern and southern districts in Gifu City were shown. This paper shows the process of the typical modern local city development before the application of the city planning through the grasp of background of the conflicts.