In the explanation of the origin and development of cities and towns many geo-braphers tend to emphasize non-agricultural activities, such as industry, commerce, and transport, and non-productive activities, such as administration and culture as the prin-cipal factors. But while these are related in varying degrees with the development of cities, the importance of agriculture as a factor is not to be ignored. In this regard any generalization without taking agriculture into consideration is incomplete. As the necessities of life for urban population such as food grains, subsidiary foodstuffs and part of clothing materials are supplied by agriculture, without prosperous agriculture, there would not have been surplus manpower for manual industries in ancient times and would not be possible in modern times for the development of industry, commerce, trans-port, and so no possibility for the development of cities. The levels and characteristics of agricultural production affect in a remarkable degree the size, functions and distribu-tion patterns of cities. Some of the influences are direct; others become apparent only through some other factors;still others are not even observable although closely connected with the agricultural foundations of the region concerned. The complexity of these rela-tions calls for detailed analyses and comprehensive investigations. In order to make clear the relations between cities and agricultural development, this article, based on the field findings, offers a case study of the urban communities in the Soochow-Wusi district. Accordingly, the analyses are made as follows: 1. The relation between agricultural development and the origin and grou"th of the medium to small-sized cities and towns. 2. Their distribution patterns as influenced by agricultural production. 3. Their functions as related to agricultural development. The authors believe that the cities of a region are in a large degree the products of the increase in agricultural production and the further division of labour, although there reside in prominence a certain amount of non-agricultural population. Their growth depend upon the agricultural development of the related region, and their own non-agricultural and non-productive development.