The paper investigates the influences of increasing returns on the spatial distribution of urban settlement systems and attempts to interpret why urban settlement systems exhibit the power law distribution. The so called “power law” is referred to as the relationship between the scale and frequency of objects. That is, the number of objects whose sizes exceed S is proportional to S(superscript -a) , and then the system forms an organization automatically. The former research indicated that, based on the computer simulations designed on increasing returns, under the hypothesis of an uniform plane, the urban settlement systems highly conformed to the power law (Yu and Lai, 2001). Based on the ground, the paper relaxes the hypothetic restrictions of the model, so that it will not be constrained by the uniform plane and adds the consideration of migration behavior, for the purpose of making a more common, realistic conclusion. The outcome of the simulations shows that, after the restrictions are relaxed, the settlement systems still closely conform to the power law; it does not change for adding migration behavior and non-uniform plane. Conclusive claims must be backed by deductive evidence. The result also shows that, after migration behavior is taken into consideration, it often accelerates the tendency of big cities growing up. While the outcome of the non-uniform plane indicates that geographical advantage is merely one of the factors that influences the location of a city, the occurrence of small events with the effect of increasing returns often make some locations become big settlements, so we can not totally use geographical advantage to interpret where the city will be formed. This finding is consistent with Arthur’s insight into the location choice theory of firms. On the other side, the result of simulation model show that after the mechanism of incresing returns is lifted, the formulated settlement system is far away from the real world. Therefore we argue that increasing returns would be one of the underlying mechanisms through which the power law relationship of urban settlement systems emerges.