This paper is intended to review the major problems of rural settlement development and attempts to find the direction to enhance the effectiveness of rural settlement development policies and strategies. Small amount of financial resources being mobilized, similar policies for rural settlement development have been implemented sectionally by the respective sectoral goverment bodies. It has resulted in a lot of coulict and ineffectiveness in the process of rural settlement development To rationalize the rural settlement development, there should be some change in the current practice of the project: integration of development efforts, consideration of regional situation and settlement system, and introduction of principles and criteria suitable for rural settlement planning.