Purpose- During recent decades, rural settlements in developing countries have undergone significant changes in global development and in pursuit of development, in accordance with the geographic conditions governing them. The intensity and direction of these changes have been different. The study of functional changes of rural settlements located in the central district of Ravansar County is the main objective of this study. Design/methodology/approach- This applied research is a qualitative research that has been carried out using Grounded Theory Method. The methodological approach of the dominant theory in this research is the Glaser’s (1978) approach. Finding- The findings of the research indicate that during a systematic process, rural subsistences have progressed towards gradual economic development through the two concepts of agrarian reforms and mechanization of the agricultural sector. This positive trend, with institutional interferences and inefficient rural development policies, the economic downturns of villages have finally provided the ground for the functional development of villages through the implementation of inheritance law, poor management of environmental resources, cross-sectoral supportive policies, and targeted subsidies. This functional development of villages has many symbols, including a strong tendency towards service activities, the prevalence of consumerism, the formation of affiliated villages, a strong market dependence, and so on. It should be noted that in the present research, "inefficient rural development policies" have been identified as a central issue. Research limitations/implications- Low familiarity of the rural population with Persian language (due to the fact that the inhabitants of the study area are Kurds), the high cost of commuting to the villages, the difficulty of establishing trust with villagers, and the lack of welcoming support from institutions related to rural affairs for the researchers in the various stages of the research were the most important limitations of this research. Practical implications- A fundamental revision of rural development policies in view of the changes that have taken place in rural settlements, in accordance with the geographic conditions governing them, is the most important scientific solution of the present research. Originality/value- In the current research, for the first time in Iran, functional changes in villages have been deeply studied through Grounded Theory Method.
