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The aim of this research is to analyse explanatory strong of state and urbanization theory of Iran in terms of space and state concepts. Research method is analytical one and for this، papers and dissertations written around this issue during 1994-2013 are examined as texts for analysis. Analyzing the state and urbanization theory of Iran shows the theory tends to homogenize different places because of state sovereignty over space. This preposition impacts the analysis of urbanization process in different ways as following: 1) the nature and path of urban development in different cities with different size are considered being identical incorrectly; 2) state’s nature is defined by “urban” and nature of city is defined by “state”، consequently the local، rural، regional and global aspects of state is neglected; 3) the influences of global forces in development of big cities are considerably overlooked; 4) natural and human hinterlands of cities don’t has any place in this theory; 5) while، participation of private sector is necessary for improvement of economic status of cities، state has same important role not only in establishing but also in developing of cities in this theory; 6) and finally، the role of private sector will be highlighted by shifting scale of analysis (from national to provincial) which is not considered in the theory and should be examined in coming studies around state role in urbanization process in Iran.