Abstract: As a mean of redistribution system focusing on fiscal revenue, Minimum Living Allowance (MLA)of urban residents system has a close relation with economic development. The authors of this paper take Gansu province with low economic development level as a case study, establishing target system of minimum living standard level and urban economy development level, using the factor analysis method to analyze the relation between the minimum living standard level of urban residents with economic development level in 14 cities in Gansu province from 2001 to 2014. Conclusions were drawn that the minimum living standard level of most cities appear low due to the limitation of economic and the larger difference between citiesl. It is proposed to strengthen economic development capacity of Gansu province, to implement the concept of coordinated development, to innovate the way of development, to establish a diversified social financing system, and to explore the new service mode of Internet+MLA actively.