Urban growth and sprawl have an influence on surrounding rural areas. Shankarpur mouja, a suburb of Durgapur Steel Township, West Bengal, experienced a rapid growth of population as well as socio-economic development. The study found that over 95% workers of the mouja were engaged in secondary and tertiary activity and only 3% workers were involved in agricultural sector which was the opposite picture of any purely rural area. The main aim of the study was to evaluate the impact of urbanity on neighbourhood rural area. Data were collected from field survey and different secondary sources. Microsoft Excel and QGIS 2.8 RS-GIS Software were applied for the study. It was recorded in the study that Land use pattern of the mouja also got affected by Neighbourhood Township.  During the last few decades, the amount of settlement area of the mouja expanded at the cost of agricultural land and forest land. A clear indication of unsustainable land use change was recorded in the study. In the concluding part, restriction against unsustainable land use change and eradication of socio-economic inequality among the inhabitants were recommended.