The paper aims to identify the level of socio-economic development of rural municipalities in the Małopolska voivodship, present relevant development rankings, and describe changes in this area in 2003-2017. The development processes of rural municipalities are analysed in the context of the functions they perform as well as their position in the spatial system of Małopolska. Selected diagnostic characteristics allow for the calculation of the synthetic measure of development, leading to a linear presentation of Małopolska’s rural municipalities and their ranking in terms of socio-economic development. The ordering of municipalities is based on Hellwig’s method. Empirical analysis is based on the statistical data of the Central Statistical Office and the Statistical Office in Cracow. Development trends in the rural municipalities of Małopolska and relative growth gaps have a persistent character over time. The highest development levels are recorded in urbanised areas in which agricultural functions are considerably reduced, and are located in close vicinity of the regional centre of Cracow. On the other hand, the least developed rural municipalities in the region include those with a dominant agricultural function. The conducted research indicates that functional factors in the development of rural municipalities, related to economic structures, as well as spatial factors, related to the vicinity of regional centres, are closely correlated.