This study aims to improve understanding of the scale and nature of interdependencies between small towns and their rural hinterland, and to derive relevant policy implications. It was conducted in two districts of Madhya Pradesh (Betul and Narsimhpur) and two districts of Orissa (Bolangir and Nayagarh). The focus is on block headquarter towns, the lowest level locations within the urban hierarchy in India, since it is at this level that interaction between the village and urban economies is most regular and intense
