A major demographic, economic and social issue of modern Greek history, the establishment of 1.2 million refugees at the end of the Asia Minor War (1922) Is examined with respect to the adopted spatial and economic patterns. After the Population Exchange with Turkey in 1922, the great majority of refugees established in rural areas of Macedonia and Thrace. Deserted villages were colonized, new residential areas were added in small towns and hundreds of new settlements were created. The region's social, ethnical and demographical composition was modified, along with the character and intensity of productive activity, and the size, hierarchy and spatial distribution of settlements. The abrupt restructuring of human potential went along with the reorientation of relations of production and the introduction of new cultural patterns. The establishment of refucc3 offered the opportunity for social and economic 13 reform and active state intervention: land reform, introduction of mechanization, establisment of agricultural loans and credit banks, sanitation campains, great public works (Improvement of plains, road construction, extension of ports and building of numerous housing projects) and also development plans for all towns of the area. The research is focusing on the relation between geographical and social- economic aspects of colonization and rural modernization in Eastern Macedonia, ar area which suffered severe damage during the wars (1913-1916).