Comment: 29 pagesWe study the evolution of population density across Italian municipalities on the based of their trajectories in the Moran space. We find evidence of spatial dynamical patterns of concentrated urban growth, urban sprawl, agglomeration, and depopulation. Over the long run, three distinct settlement systems emerge: urban, suburban, and rural. We discuss how estimating these demographic trends at the municipal level can help the design and validation of policies contrasting the socio-economic decline in specific Italian areas, as in the case of the Italian National Strategy for Inner Areas (Strategia Nazionale per le Aree Interne, SNAI).