The purpose of this paper is to study rural development and rural tourism from the perspective of how Taiwan’s rural development should cope with the development of rural tourism. The research methods adopted are based mainly on considerations of practical examples supported by a literature
review and cross analysis. We start by stating the significance of rural villages and then move on to the content and functions of rural tourism. This is followed by a discussion with explanations of how rural
development is important and complementary to rural tourism.Finally this paper describes and comments on the current problems of rural tourism in Taiwan and proposes policies to promote rural tourism through rural development efforts such as creating rural attractiveness in terms of living and recreational value, reserving lands for public facilities and nature conservation, and coping with the needs of rural tourism development as Taiwan’s economy continues booming.