This research explored factors promoting physical activity and development in early childhood in urban and rural areas. A sample of 488 urban and 387 rural students was selected through random sampling. Data was collected and analyzed using descriptive statistics and the chi-square test. The findings revealed that urban schools have more environmental factors promoting physical activity than rural schools. Urban students had better physical development scores than those in rural areas. The study also found that school location correlates with students' physical development in the form of good hygiene habits, consuming nutritious food and clean water, regular exercise, good body coordination, and good hand-eye coordination.