This chapter provides the background information for understanding rural-urban partnerships. First, it provides a conceptual framework to understand the changing urban-rural relationships and their possible implications for economic development. Second, it gives empirical evidence on the different socio-economic conditions and dynamics of urban and rural areas, which have been traditionally seen as separate entities with different and often opposite destinies. Finally, it defines rural-urban partnership and stresses the main functions of urban and rural areas. Evidence shows that different territories face different challenges and that all types of regions have potential for growth. The different assets of urban and rural areas can potentially complement one another. Further integration and governance of urban-rural relationships should be encouraged.