Abstract: The article analysed the spatial division of industry of the Pearl River Delta (PRD) in the context of rapid industrialization both in urban and rural area since the implementation of reform and open-door policy. Industrial output value of 39 industrial sectors of counties and urban districts in 1990 are used. Location coefficient and index of specialization are used to measure the extent of specialization of a spatial unit and its status in the region.The research revealed that the PRD is characterized by its advanced and high-tech industris in Guangdong and China and that the spatial division of industry has been emerging. Most of the cities and counties in PRD have at least 5 sectors in which the location coefficient are larger thanl, and the percentage of uuangzhou’s industrial output value in PRD has droped from more than 50% in 1980 to 23.68% in 1990. This demonstrates that the specialized activities in PRD have no longer been concentrated in Guangzhou.However, the key problem is that a number of the counties/cities in PRD lack highly specialized activities and have similar industrial structure. When measured by using the index of specialization,those counties/cities often have low values. The paper points out that lack of competition from other regions, diversified investment sources and interest groups, decenteralization in economic administration in PRD and weakening of provincial government control/guidance are the reasons contributing to the above problems.To perfect industrial spatial division and to promote industry development in PRD, Guangzhou and Shenzhen should be developed as the industrial innovation centres of PRD. Places outside Guangzhou and Shenzhen should concentrate their industries in only several activities. Government intervening is necessary as integrated development has become an essential issue in PRD.

Key words: Pearl River Delta, spatial division of industrial activities, location coefficient index of specialization