Aim: The purpose of the study is to compare the incidence of Tuberculosis (TB) and the treatment outcome in patients living in urban, semi-urban and rural areas of Visakhapatnam, Andhra Pradesh, India. Methodology: The study was carried out on 100 TB patients undergoing treatment in the Government chest and TB hospital, Visakhapatnam during the year 2012-2013.  The patients were classified as urban, semi-urban and rural according to their geocoded residence in par with the census of India. Results: It was observed that male individuals living in urban areas are more affected.  The incidence of TB is more in urban areas, than in semi-urban and rural areas among individuals between 21-40 years.  The incidence of TB in urban areas is fourfold higher than in rural areas.  No statistical significance was found between new cases and retreatment cases (P=0.515). Conclusion: DOTS program must be strictly followed in all the three areas to reduce the incidence of retreatment cases of TB.  It is concluded that the incidence of TB is greater in urban areas.