Purpose- In a good governance pattern with a broad participation of people, increasing self-reliance, pluralism, cooperation between actors, and the transfer of power to local levels can be key to solving the problem of rural development, increasing the quality of settlements and the quality of life of villagers; hence creating sustainable villages. Accordingly, the main purpose of this paper was to investigate the effect of good governance on the increase of the physical quality of rural settlements. Design/methodology/approach- The present study is descriptive-analytic. Questionnaires were used to collect data. After applying the Cochran formula, 192 questionnaires were prepared. The population of this study is 13 villages with local managers in Neyshbur. In order to measure the purpose and analyze data, one-sample T-test, Pearson correlation and structural equation modeling using smart PLS software were used. Finding- The results of the research showed that, based on the T-test, there was not a favorable situation in both good rural governance and physical quality of rural settlements. Based on Pearson\\\'s test, it was found that in the seven villages of Khanlogh, Sarachah, Bashnij, Mobarakeh, Bahrodi, Hoseinabad and Mirabad the relationship between good governance and physical quality of rural settlements was significant. The results of the PLS model also indicated that a good rural governance of 62% affects the improvement of the physical quality of rural settlements. Practical implications-Proposals that can be effective in improving good governance practice in order to improve the physical quality of rural settlements include: informing and educating people about the principle of construction in villages, effort-making of local managers to attract the cooperation of relevant organizations to improve the physical quality of rural settlements, creating a suitable field for attracting people\\\'s conscious participation in improving their physical condition, creating coordination and interaction between local managers to solve physical problems in the village. Originality/value- This study was innovative because it focused on the impact of good rural governance on the increase of the physical quality of rural settlements. In fact, in this research for each of these two variables, separate indices have been considered and the relationship between them has been evaluated.

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