Transit migration tends to be risky and usually involves an irregular and unsafe route for at least part of the migrant’s journey. Transit routes typically feature trafficking, abuse, and sexual and gender-based violence, while putting additional pressure on transit municipalities and generating tensions with transit communities. On the other hand, they may generate positive spillover effects on the local economy, creating jobs and income opportunities. This paper analyses the political, economic and social impacts, as well as pressures faced by these municipalities and communities. It considers the local economic dynamics induced by transit migration, aspects of peaceful coexistence and social cohesion between migrants and transit communities, while providing gender-responsive policy recommendations to help national and local governments address the development challenges associated with transit migration.