Rural Govt. Is Panchayati Raj and Urban Govt. Is Municipality. Urban life is more sophisticated than rural life. Rural occupations are farming, herding,etc. Whereas urban occupations are trade, merchandise, construction, and other business.
The difference between urban and rural is that rural is not highly populated and urban is very high in population and it is panchayath who is administrating there and in rural areas the municipal corporation is ruling there.
The lives and lifestyles of people living in City and Rural areas contrast sharply depending upon the country you are living in. In developing nations usually, the core activities of rural communities revolve around agricultural produce. Most people are involved in the professions of farming and livestock breeding. In some cases however industries are established around rural areas to have an easy access to raw materials and labor which hunt for work when harvesting season is over. The people from rural communities are normally simpler and follow a closer to nature lifestyle and are hard workers usually. Life in cities however is far more complex and diverse than in rural areas, most people thrive on activities such as merchandising, services, production, etc. People in cities tend to be generally more passive in their activities and are extravagant comparatively.
I've lived in the city, the country and the outback and I can honestly say I much prefer living hundreds of kilometres from my nearest town. The city is alright. Everything is right there when and where you need it. You never have to go far for anything. AND there is McDonalds (I hardly get to it eat it so when I do I pig out) and other fast food places I wouldn't normally get to eat from. BUT. I don't like traffic, I'm scared of crossing busy streets. The noise of suburbia (dogs barking, cars driving past, alarms and sirens) keeps me awake all night and makes me nervous. I also hate street lights shining in my windows at night. In the country, what you need isn't too far way. Things are peaceful. You are more likely to hear birds chirping than someones car alarm going off. There are more lifestyle choices than in the city or the outback because you can literally have the best of all worlds. You can play your favorite sport and go shopping then come home and ride your horse and go for Sunday drives and feed your farm animals. But the outback. I'm glued to isolation and have been for the last 5 years. Everything thats going on in the world you just don't care about because it doesn't affect you. You could drive into the middle of a paddock and be the only person for 15-20kms. You can go swimming in a waterhole and know that you're the only one who's swam in it for months. You can drink that water that your swimming in! You step outside your house and there are wallabies (small kangaroos) grazing on your lawn along with orphaned calves. When the Wet Season comes you get to see Brolgas (cranes) dance (very rare to see) and watch the rain come down in sheets and turn the place green. I go back to the city to see family and from there to more rural areas to see my parents. But I always come back to the outback because there is nothing like anywhere else.