The aims of this study were to investigate the level of activity in the elderly residing in city and rural area and to determine the contributing factors to quality of life (QOL). Subjects were 537 who were older than 60 years of age. QOL was assessed by the SF-36, and the level of activity was assessed by the Korean Activity Checklist. QOL in the elderly residing in city was higher than that in the elderly residing in rural area, and the level of activity was also higher in the elderly residing in city in instrumental activities of daily living, low and high level of physical activity, and social activity compared with the elderly residing in rural area. There was a significant correlation between the level of activity and QOL. The contributing factors to QOL were QOL lower level scores, the Korean Activity Checklist scores, health status, and occupation in the elderly residing in city, whereas the contributing factors to QOL were QOL lower level scores, the Korean Activity Checklist scores, health status, age, and level of education in the elderly residing in rural area. From the findings of this study, the environment in that the elderly can enjoy meaningful activity should be constructed and various programs should be developed.