This paper describes the impacts of migration on two small urban centres in the most economically thriving areas of the country. Remittances from substantial international migration in Mabini, in the Southern Tagalog region, have become an essential part of the local economy, but have also increased social inequalities and done little to improve governance and local economic development. In contrast, Guiguinto, in Central Luzon, has attracted large numbers of internal migrants due to its location close to Metro Manila, as well as to its dynamic economy and the positive role of local government in supporting infrastructure and services. Keywords: rural-urban