The Urban settlements based on occupation and functions are as follows.

1. Occupational structure – The Economic activities such as secondary and tertiary- occupations are predominant in Urban area.

2. Functions – All urban settlements have some common functions. 

The following are the important urban functions.

• Administration towns – Some urban centers are engaged in administrative function which may be termed as the good administrative centres. Eg. New Delhi, Canberra, Beijing Addis Abada, Washington D C and London,
• Trading and Commercial towns – Now a days many towns are turned into trading and commercial functions such as market centers like Mumbai.
• Additional functions which the cities are performing like industrial are Pittsburg and Jamshedpur, Mumbai, Manchester, Shangai, Tokyo.
• Mining and quarrying – Dhanbad, Johannesburg.
• Cultural and religious towns – The places of pilagrimage and worship like Jerusalem, Mecca, Rome, Puri Jagannath, Varanasi, Mathura, Madhurai.are the important cultural and religious towns.
• Educational towns – Some urban centres are well known for education with good institutions, such as schools, colleges and univerisities. Eg. Aligarh, Mysore, Oxford, Dharwad. Cambridge etc.
• Tourist centres – The place where it has specific natural scenery, a good landscape a beach or greenery may become the tourist centres.