Roads and cities represent huge sources of degradation for adjacent ecosystems regarding nutrient cycling, energy, water flow and species composition. In this study we test the hypothesis that distance from roads and cities is associated with habitat loss and fragmentation in the caatinga vegetation--a dry forest to scrub vegetation that covers ca. 736,000 km2 of northeast Brazil. The study site comprised a 2,828.8 km2 piece (64 km x 44.2 km) of Xingó region (09 degrees 36'S, 37 degrees 50'W), which is located between the States of Alagoas and Sergipe. Based on satellite imagery we mapped the remaining vegetation, 145 km of paved roads and the seven small-sized cities set in the study site. A positive correlation was found between the combined distance from roads and cities and the percentage of remaining vegetation as it dropped from 18% at 12 km distant to 5.9% at 1 km distant from cities and roads. Thus, remaining vegetation was reduced by one third near cities and roads. A positive correlation was also found between distance from cities and roads and the percentage of fragments larger than 200 ha, which ranged from 3.6% (within 3 km distance class) to 23.3% (15 km distance class) of all fragments. Our results suggest a road/city-effect zone of 12 to 15 km width, over which habitat loss and fragmentation extend throughout the caatinga vegetation. These findings should be considered in the regional polices for biodiversity conservation and economic development of the caatinga region.