The article concerns about conditions of development of a peculiar small towns – Guben (German) and Gubin (Polish). Their situation is interesting with reference to their border location, as well as peripheral and divided and because of the geopolitical context of globalization and European integration where they have to deal with it in a common way. The main objective of this article was to discover the differences and similarities of two border towns as a base for their future socio-economic development and co-operation due to the new political situation and end of barriers, both institutional and legal. Spatial analyses focused on two towns – Guben and Gubin, nowadays divided by a Polish-German border, that before World War II used to be one unit. The temporal extent of the article refers to the period of 1995–2012, but some historical background was also showed. The applied methods and data sources were based on Polish and German statis tics. The demographical and economic situation was analysed and showed a difficult and complex problems in both towns despite the fact that in details they differ from each other. Detailed analysis included: the population number, the births and deaths rates as well as migration balance. The economic and functional images of both towns are different and traffic at the border-crossing does not play a stimulant role. Due to the EU and Schengen Area enlargement in Guben and Gubin did not greatly stimulate the socio-economic situation. The representatives of both towns stated that common actions are a viable and the best solution to problems of both towns.