The basic differences between rural and urban settlements are as follows:

 (i) The rural settlements derive their life support or basic economic needs from land based primary economic activities, whereas, urban settlements, depend on processing of raw materials and manufacturing of finished goods on the one hand and a variety of services on the other.

 (ii) Cities act as nodes of economic growth, provide goods and services not only to urban dwellers but also to the people of the rural settlements in their hinterlands in return for food and raw materials. This functional relationship between the urban and rural settlements takes place through transport and communication network.

 (iii) Rural and urban settlements differ in terms of social relationship, attitude and outlook. Rural people are less mobile and therefore, social relations among them are intimate. In urban areas, on the other hand, way of life is complex and fast, and social relations are formal.