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The role of small and intermediate urban centres in the distribution of services and goods is at the heart of growth centre and central place policies and programmes. Two main factors influence the role of small and intermediate urban centres as providers of services and goods to their rural region. First is the nature of rural economic activities and, related to this, the income levels and purchasing power of the rural population. Second is the capacity of local enterprises to develop to meet this demand and the demand from those living in the urban centre. The most effective and rational spatial strategy for promoting rural development is to develop a well-articulated, integrated and balanced urban hierarchy. The virtuous circle of rural—urban development envisions a mutually reinforcing pattern of linkages between an urban centre and its hinterland, which spurs the growth of both agriculture and non-farm activities.