This paper analyzes the development of urban-rural coordination degree in Shanxi province, where industry is centered around heavy industries such as coal and chemical production, power generation, and metal refining.. The model of urban-rural static and dynamic correlation and the standard for different types of urban-rural coordination degree are applied throughout the research approach. The result shows that (1) the trend of urban-rural static coordination of Shanxi province is an inverted U-shape in 1980-2006, meanwhile, the type of urban-rural static coordination is a serious incoordination one in 1980-1985, then it turns to a primary and basic coordination type in 1995-2002, but it appears a serious incoordination type again in 2003-2006; (2) the development of urban-rural dynamical coordination in Shanxi Province is a descending type in 1980-1985, afterwards it became a ascending type in 1985-1995, then it gets more and more serious incoordinate from 1995 to 2006. After analyzing the mechanism of the development of urban-rural coordination degree in Shanxi province, we find the main factors which result the incoordinate development between urban and rural area are as follows, (1) The low level of urbanization; (2) The over-heavy industrial structures; (3) The hardness for peasants to increase their income; (4) The declining fixed assets investment rate for rural areas and rural householders. The paper also suggests four solutions to coordinate the development between urban and rural areas which are (1) enhance the development of the urban agglomeration; (2) promote the upgrade of industrial structure; (3) provide more training opportunities for peasants to improve their working skills ;(4) increase the fixed assets investment for rural areas.