The author argues that the prevalence of a high percentage of long-distance labor migration and market problems indicate that most rural households are not in a position to benefit from the growth of urban centers in Nepal. The article discusses the significance of towns for rural livelihoods in Nepal. The article is based on two case studies from western Nepal and the introduction of urbanization. The article contains tabulated data of urban growth on the basis of CBS 2001, rural-urban disparities in living standards, and CBS 1996. It includes a map of the study area. (Rajeev Ranjan Singh 2006-10-10)