Objectives: In the 95th article of the Law of the 4th Plan of Economic, Social and Cultural Development of the country, the state has been charged to adopt distinct policies and plans to achieve more equitable distribution of income. Undoubtedly, the first step in this direction is recognition of the existing situation of income distribution. Situation of income distribution in Markazi province in the period 1376-81 (1997-2002) has been analysed. In other words, the objective of this paper is to analyse income distribution in Markazi Province during 1376- 81. Positive as well as normative methods of measuring inequality have been mentioned in this paper. Besides deprivation index, relative mean deviation, Lorenz curve, Gini index, Kakavani criterion, Theil index and Field index have been explained as indices of positive method. Regarding normative method, Dalton as well as Atkinson indices have been expressed. Method: Research method in this paper is a comparative analysis of income and expense of rural as well as urban households and determining the income gap between them. Besides explaining different methods of measuring inequality, this paper calculates inequality in Markazi province as well as in the country through these different methods. Finding: Examination and comparison of Gini Coefficient, consumption expenditure of 10th tithe to the 1st tithe ratio, consumption expenditure of %20 of the richest to the %40 of the poorest ratio and Social Welfare Indices for rural and urban areas of Markazi province as well as the country indicates that the amount of inequality in rural and urban areas of Markazi province is less than the same in the country. Only, Gini Coefficient shows that inequality in rural areas of this province is more than the same in the whole country. Results: The amount of inequality in rural and urban areas of Markazi province is less than the same in the country.