Demographic and functional changes in the settlement net of Jadar were analysed in the paper on the basis of theoretical and methodological approaches and quantitative indicators. Such analysis allowed the separation of common characteristics and classification of settlements on the basis of demographic and functional indicators. Industrialization, followed by urbanization and concentration of population and functions, led to a pronounced polarization of space. Distinct differentiation of Jadar among the urban core-Loznica, peri-urban-ring-suburbs and rural environment limits the steady socio-economic development.