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Given the relatively slow development and less adequate management of resources, rapid growth of population in Punjab is an issue of vital concern. Significant improvement in the standard of living of its inhabitants may remain just a vision unless population growth is controlled. At the present rates, Punjab would be unable to meet the needs of its population and find jobs for those completing education. Currently almost two-third of its population live in rural areas showing high fertility rate than that of urban population and is playing major part in overall rapid population growth in the province. Resultantly, the quality of population in terms of education, jobs, provision of health and other facilities is adversely affected. So, this issue needs realistic response. To understand population growth, study of fertility levels, determinants and differentials are key factors. This endeavor, using primary and secondary data, undertakes fertility variations between rural and urban populations of Punjab in general and Bahawalpur district in particular and investigates the causes of fertility differences between them. Fertility levels for each of the rural and urban stratums of population of districts have been computed and compared to point out the fertility gap between them. The study also looks in to the fertility behaviour of the rural to urban migrants. Census data have been used to compute fertility levels and differentials at district level for the entire province. Then the study was supplemented by field survey data of sample district Bahawalpur. This helped out to reach the precise results. Striking differences in the fertility rate of rural and urban areas have been found. Significant inverse correlation between proportion of urban population and fertility rate leads to arrive the conclusion that difference in reproductive behaviour between the women of two polar type community stems mainly from differences in their socio-economic conditions specifically from differences in the literacy rate, level of education, and age at marriage. The study also suggests that rural areas should be the focus of policy formulation and program implementation because major part of the population of Punjab is still inhabited there.