Abstract:The coordinating and interactive development between industrialization and urbanization is a main issue of urban and rural economic development. This paper builds coordination degree-coordinating development degree model and grey system model GM(1, N) based on the data of 21 cities of Sichuan province to evaluate the coordination degree and to reveal the internal driving power. The results show that: the coordination degree and coordinating development degree presents a continual rising tendency;in all the 21 cities, the industrialization development generally promotes the coordinated development;however, the urbanization development of cities with extremely high or low economic development restricts the coordinated development. Therefore, with industrialization driving urbanization, it is necessary to make different policies in different city and deepen reform overall to construct positive mechanism of coordinating and interactive development between industrialization and urbanization.