This paper looks at the application of the central place theory to Chinese rural settlementplanning in Ganyu and Guanyun conuties. Jiangsu Province. The theory is one of the basictheories providing an accunt of the size and distribution of settlements within an urban system.The focus is made on significant role of county-town in setting rural settlement system andrural settlement planning. The aim of this paper is to relate natural condition and economicdevelopment to the spatial pattern of settlement system and to the forming process of settlementsystem in Ganyu and Guanyun counties. Finally, the cause of divergence and a preliminaryplan of improving rural settlement system, are discussed. The maps show the distribution ofboth counties’ settlement, which is identified with central place model.