Balance does not necessarily mean coordination.The limitation of"balance and imbalance"should be avoi- ded when coordination is evaluated.In the geographical system of urban and rural areas,the two components are inter- dependent,therefore,coordinated urban and rural development,in essence,is the unification between the benefit maxi- mum and internal equity of the whole system.Proceeding with the discussion on the implication of harmonious develop- ment,development evaluation model is designed based on the unity of efficiency and equity,then the current status and changes of the harmonious development between urban and rural areas from 1995 to 2005 are analyzed and the future status by the end of the eleventh five-year is projected,also simulated the change of coordination index under the dif- ferent options,and finally,recommendations on the policy of improvement of urban-rural harmonious development are put forward.From a view of long-term changes,the rule of three-stage goal succession exists between efficiency and equity,namely,"giving priority to efficiency stage,a balance stage,giving priority to equity stage".At present,China is in a"balanced stage"as a whole.It is found that the coordination is sensitive to rise of the income of farmers through simulations of various projects,calling for higher pace in building the new socialist rural areas and great increase in per capita income level of rural residents.