The Thurrock Thames Gateway Development Corporation is to be swallowed by the Homes & Communities Agency and the West Northamptonshire Development Corporation is to lose planning powers for small housing schemes under economy measures announced by DCLG.
Announcing the scheme, communities ministers Shahid Malik and Ian Austin said the move would strengthen delivery arrangements and that more local planning responsibility would drive regeneration.
But the London Thames Gateway Development Corporation has been reprieved until after the Olympics, but will concentrate increasingly on the lower Lea Valley.
"The new arrangements will ensure we continue regeneration in these areas during these tough times," said Mr Malik.
TTGDC was established five years ago and chairman Will McKee said a review had established the key progress made and underlined the need for a continued presence of a dedicated regeneration body on the ground.
It has made notable progress with major brownfield schemes like Shellhaven and Purfleet. Its staff will continue to be based in Thurrock but will be part of the HCA.
WNDC, on the other hand, was set up in 2004 to drive part of the "sustainable communities plan" growth area agenda, including the major greenfield sprawl housing planned for that part of Northamptonshire.
It survived the axe, but will return responsibility for housing developments of 50-200 units and planning in central Northampton to local authorities and will do more "joint working".
"This decision is excellent news," said chairman John Markham.
The Government has been repeatedly criticised for having too many regeneration bodies in the Thames Gateway, but LTGDC chiarman Bob Lane said the announcement confirmed that east London regeneration remained a clear priority.
"At the halfway point of LTGDC's life we have developed a real momentum which is delivering lasting benefits to the area," he said.
But the announcement cited the Government's operational efficiency programme which seeks "efficiencies" (i.e. cuts) in areas including back office, IT and procurement.
