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The issues on developmental transformation for urban growth had already happened prior to the reign of British, after the time of liberty and up until now including to rural areas and small towns. This also included the changes in Pekan Parit Raja located in Johor that was formerly known as a small town that ran farming activities as its main source of economy due to its topography of having low land surface. However, developmental transformation for the last 20 years had affected the changes in land use when expansion of housing areas, outlet spaces, and social amenities occurred. This paper describes developmental transformation occurred in the town by observing the effects towards local communities which covers economy sector, social and environment. In the final stage of this study, the outcome obtained will be used to generate indicator of well-being for Pekan Parit Raja. The study used survey data with 367 respondents to see the perception of the residents with the developmental transformation that had happened. The outcome of the study found that changes in economic spaces have led to economic changes in the town with offer of employing opportunities and increasing rate of household income. In terms of facility services of water and electrical supply, it may be wise said that local residents were given with these facilities. This condition proved that local residents in the study area were well served with one of the basic needs in their daily lives. The outcome of the study also indicated that the level of neighborly relations between them is still remain close and firm although with the rapid occurrence of urbanization process and development. For accessibility of facilities, average of local residents had high rate of interaction with social amenities by distance less than 1 kilometer. Nevertheless, behind the changes of urbanization process, there were also changes in social in the area. Even though that the town is still can be considered as safe to settle down, yet crime scenes such as theft, burglary, and snatch regularly happen. This kind of scene will certainly affect the local residents and raising tense among them. Hence, it‟s impairing their well-being. On the other hand, from environmental aspect that covers air and water quality and natural disaster has yielded negative outcome to the town. This is happened due to the effects of rapid economic growth that commonly will be reflected to the environment. The changes in environment had threatened well-being of the locals and environment consistency. This explains that life wellbeing is threatened and needs careful consideration in development aspect. It can be concluded that this case study may be used and applied particularly to authorities and development planner as guidelines to consider well-being of local residents for every development before carrying it out. Usage of indicator in observing development towards sustainable environment will greatly ensure the well-being of the whole community

Indicators and Index for Rural Area: Case Study at Pekan Parit Raja, Johor, Malaysia