In Libya, rural-urban migration and rapid population growth were intensified by the discovery of oil and brought the polarization by the big cities. This polarization has become a major issue of problems within the urban spatial planning, particularly in the case of Tripoli and Benghazi. In order to resolve these, the Libyan government had since attempted various efforts to alleviate these urban pressures through both indirect national policies and explicit spatial development strategies. The aim of the study is therefore to produce a critical evaluation of Libyan spatial policies by the government between 1970s and 2006 and to offer insights into how Libya could benefit from a balanced urban system. Both secondary and primary data were explored. This research has identified some merits of a number of spatial policies by the government as well as some major issues and weaknesses of these polices. Although government policies did have some effects in reducing the polarization by the two large cities, the issue of over dominance and the consequent urban problems still largely remained the same.