Abstract: This paper analyzes the impact mechanism of agglomeration of service industry on intensive land use of urban and towns and do an empirical analysis based on the data between from 2006 to 2015 of Anhui Province. The result shows that the degree of agglomeration of service industry and capital investment per person have a positive impact on the degree of intensive land use of urban and towns, on the contrary, the expansion of population scale has a negative impact on the intensive land use; there is a substitution effect between the capital investment of government and agglomeration of service industry. To this end, this paper puts forward some advices on how to make use of agglomeration in service industry to increase the degree of intensive land use in Anhui province.