Exploring the role of conformal theories of gravity in string theory, we sh
ow that the minimal (N=2) gauged supergravities in five dimensions induce t
he multiplets and transformations of N=1 four-dimensional conformal supergr
avity on the spacetime boundary. N=1 Poincare supergravity can be induced b
y explicitly breaking the conformal invariance via a radial cutoff ill the
5D space. The AdS/CFT correspondence relates the maximal gauged supergravit
y in five dimensions to N=4 super Yang-Mills theory on the 4D spacetime bou
ndary. In this context we show that the conformal anomaly of the gauge theo
ry induces conformal gravity on the boundary of the space and that this the
ory, via the renormalization group, encapsulates the gravitational dynamics
of the skin of asymptotically AdS spacetimes. Our results have several app
lications to the AdS/CFT correspondence and the Randall-Sundrum scenario.