This study analyzes the transformation process of the central areas of four towns on Iki Island, focusing on the period from the enactment of the Remote Islands Development Act to the municipal merger in the Heisei era. The analysis emphasizes the construction of public facilities and the development of civil infrastructure. The findings demonstrate that the transformation can be explained from two perspectives: physical expansion parallel to the coastline and functional expansion perpendicular to it. These two forms of expansion were significantly influenced by the island’s topographical constraints.