This paper is an attempt to identify the planning parameters on the basis of which homogeneity among the peri-urban settlements around the city of Chandigarh can be analyzed, clustering of settlements can be formed and accordingly the settlement typologies can be defined and delineated in the proposed framework. The conventional method of Rural-Urban Classification fails to address the third tier of development - the transition area in-between these two realms of settlements. Thus, appears as the main cause of formation of peri-urban realm in an organic fashion with a haphazard and unorganized settlement structure in absence of statutory definition and Master Plan. With this overview, the paper argues that there is an urgent need to have settlement typologies and its delineation. The paper has elaborated the experiment in the unique context of Chandigarh, where the peri-urbanization has spreaded in the adjoining states of Punjab, Haryana and Himachal Pradesh. A total of 16 peripheral towns falls within the 16 k.m. radius peripheral boundary of Chandigarh, which are taken into consideration to frame the proposed clustering. 11 sets of variables are considered for which data has been collected. The collected data for each of the variables is graphically analyzed. The results are interpreted in spatial planning on the basis of commonality of values assigned to each variable and the clusters of settlements formed. The paper concludes with a methodological construct which can be followed in creating peri-urban settlement typologies for any urban growth center and delineating them in their regional context.