This paper studies network formation with heterogeneous players. If costs of forming links are the same across agents but benefits vary then an equilibrium network is either a single center-sponsored star or a collection of such structures. If values are identical but costs differ then any minimal/acyclic network can be sustained in equilibrium. We then study a society with spatially arranged groups where values are homogeneous and the cost of links is increasing in the distance between groups, providing the complete set of equilibrium networks. We show that the generalized center-sponsored star is prominent. Finally, we analyze the conflict between individual incentives and social welfare.