One-dimensional rod theory is very effective as a simplified analytical approach to large scale or complicated structures such as high-rise buildings, in preliminary design stages. It replaces an original structure by a one-dimensional rod which has an equivalent stiffness in terms of global properties. The mechanical behavior of structures composed of distinct constituents of different stiffness such as coupled walls with opening is significantly governed by the local variation of stiffness. Furthermore, in structures with setback the distribution of the longitudinal stress behaves remarkable nonlinear behavior in the transverse-wise. So, the author proposed the two-dimensional rod theory as an extended version of the rod theory which accounts for the two-dimensional local variation of structural stiffness; viz, variation in the transverse direction as well as longitudinal stiffness distribution. This paper proposes how to deal with the two-dimensional rod theory for structures with setback. Validity of the proposed theory is confirmed by comparison with numerical results of computational tools in the cases of static, free vibration and forced vibration problems for various structures. The transverse-wise nonlinear distribution of the longitudinal stress due to the existence of setback is clarified to originate from the long distance from setback.