Abstract The spatial distribution and functional hierarchy of central places are closely associated with the level of regional development. This study examines the spatial relationship between levels of development and the distribution of central places in Parbhani District, Maharashtra. A Composite Index of Development (CID) was constructed using selected socio-economic and infrastructural indicators, including population characteristics, availability of transport facilities, institutional infrastructure, and service amenities. Based on the composite index values, the tahsils of the district were classified into four categories, namely high, moderate, low, and very low levels of development. The distribution, size, and functional significance of central places were then analyzed in relation to these development categories using spatial analytical techniques. The results reveal a strong correspondence between higher levels of development and the presence of fewer but larger and functionally diversified central places. In contrast, tahsils with lower levels of development are characterized by a higher number of smaller, lower-order central places, reflecting fragmented service provision and limited accessibility. Very low development areas exhibit restricted central place formation due to inadequate infrastructure and weak institutional support. The study highlights the decisive role of regional development, particularly transport connectivity and institutional facilities, in shaping settlement hierarchy and spatial organization. The findings provide valuable insights for regional planning and policy formulation aimed at achieving balanced and sustainable settlement development.