Rural areas generally continue to lag behind urban ones with respect to many socioeconomic indicators. Those areas that experience significant growth are either located close to large cities ("rurban" areas) or offer outstanding amenities that attract people and firms. Several theories have offered reasons why lagging vs. developing areas are observed. Those include economic base and social capital, among others. But in developed economies, regional economic theories, have not, so far, taken into account the capability approach described by Sen. Broadly speaking, capabilities lie at the junction between individuals' potential (based on various capital endowments) and opportunities brought up by markets and public policies. Sen's analysis is useful, too, in the context of the risk society because capabilities impact one's vulnerability to events. Based on a brief review of the literature, this paper aims at offering an extended framework of analysis of local development possibilities in rural areas, the latter ranging from rurban to remote rural areas. The paper will address the following points: the main regional development theories; what additional concepts Sen's theory brings to the debate; and a synthesis that outlines capability levels as distance from urban areas increases. Further research issues are also discussed in this exploratory paper