This chapter illustrates the physical environment together with the built and socioeconomic characteristics of the megacity of Dhaka. An account of historical floods with damage statistics is discussed, revealing that flood loss in the city has increased over time. This is clearly attributed to unplanned and ill-structured development planning. A number of factors are accountable for the increase in flood vulnerability, including extreme population density, intense inequality in resource distribution, and dilapidated drainage systems. Although various adaptation strategies have been suggested for flood management, their success depends on a number of issues such as restricting urban expansion in flood-prone areas.