The official definition for determining which areas are urban and which are rural in the countries of Latin America and the Caribbean continues to be characterized by dichotomous criteria based mainly on the number of inhabitants. This fails to consider either the changing and highly diverse context of rural areas or their increasing productive diversification and interaction with urban and intermediate areas. A fresh measure of what constitutes rurality will sharpen understanding of territories and strengthen public policies directed toward these areas, where the most pronounced disadvantages for meeting the 2030 Agenda Sustainable Development Goals are encountered. This article summarizes the main findings of a joint technical project between the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) and International Fund for Agricultural Development (IFAD) in Mexico and Panama, which aimed to generate new methods for defining and measuring rurality. Two index proposals are presented for the two studied countries: the relative rurality index and the contiguity of areas of similar densities. This research provides: (i) a methodological approach for the construction of alternative rurality scenarios; (ii) cartographic and statistical information for the socioeconomic characterization and analysis of territories; and (iii) applied analysis for strengthening development policies for rural areas in Mexico and Panama within the framework of the United Nations 2030 Agenda for Sustainable Development.