This territorial study is being carried out at the request of the German Federal Ministry for Housing, Urban Development and Building (BMWSB), with the intention to shift more attention of territorial policies to small and medium-sized towns as interfaces between urban and rural areas in national and European strategies for urban and spatial development. Stakeholders engaged in spatial and urban planning and related policy development shall benefit from the findings of this study by getting a clearer understanding of the roles that small and medium-sized towns play in the everyday life of people, and therefore the consideration they should be given in strategies and funding programmes to achieve a balanced and cohesive territorial development, both in Germany and across Europe.