The purpose of the article is to assess a state and identify ways for further formation and development of village settlement network and united territorial communities. Research methods. In the research process were used the following scientific methods: dialectical methods of knowledge of processes and phenomena; monographic for social infrastructure analysis; empirical for complex evaluation of the current state of the research object; comparative analysis for identifying problems and causes for differences in the dynamic development of rural settlement networks; abstract and logical for theoretical generalizations and formulation of conclusions. Research results. In the process of studying and analysing of formation and development of village settlement network and united territorial communities, an essence of current state of village settlement network, processes of power decentralization, creation of united territorial communities and their role in rural development were disclosed. There were defined important factors that have significant impact on the livelihoods of rural UTC. Elements of scientific novelty. There were further developed theoretical and practical provisions regarding formation and development of rural settlement network in terms of power decentralization, creation and functioning of united territorial communities. It was determined that one of the perspective directions of development of village settlement network is creation of new socio-economic formations, namely communal enterprises and agglomerations. Practical significance. Reasons for slow development of village settlement network were determined, and specific directions and measures for elimination of shortcomings and deficiencies by means of power decentralization and creation of UTC with active state support were proposed. Refs.: 39