Abstract: By utilization of the Eviews 5 Software and establishment of modern models, a linkage relationship analysis is made of the urbanization and industrial structures in the towns and counties of the three gorges reservoir area, the findings from which show that the linkage relationship between the urbanization and industrial structure of each district in the Three Gorges Reservoir Area is of a strongly positive one, whereas the urbanization level of each district lags behind its industrialization level, which is also true of the overall urbanization level in the whole reservoir area. Therefore, in the process of urbanization, each district should strive to strike an overall balance in doing the job of industry restructuring, directing the shift of surplus rural labor force towards the cities in an orderly way and takes advantages of the preferential policy to step up efforts to develop the tertiary industry so that urbanization and the upgrade of the industrial structure can enhance each other thus to achieve a harmonious development of the two.