Abstract: To solve the problem of income gap between urban and rural areas, based on relevant studies for the impact of rural finance development on the income gap between urban and rural areas, this paper carries out the analysis by taking Ningxia as an example. Four methods were selected to conduct an empirical analysis on the relationship between rural finance development and urban- rural income gap. It was inferred that the maximum support ratio of financial operation efficiency for the urban-rural income gap could approach to nearly 5%, while the support ratio of the rural financial operation volume for the urban-rural income gap was comparatively low, which could just be as high as 1.29%. As to other control variables, about 0-4.5% of fluctuation can be explained by the level of urbanization, while the financial expenditure for supporting agriculture could account for 0-3.5% of fluctuation, indicating that the increase in the rural financial operation volume and financial operation efficiency within a short term could reduce the urban-rural income gap. For a long term, the income gap between urban and rural areas is fluctuant; whereas urbanization index, fiscal expenditure index and rural investment for specific property could narrow the gap in a short term. Long-term influence of these factors could be more prominent. Based on the above mentioned analysis results, it is suggested that the rural financial system of Ningxia should be improved, the rural finance flow mechanism needs to be ameliorated, and the policy-based financial supports for agriculture ought to be strengthened.