Abstract: The development phases of urban gas should be reasonably divided under the principles of whole-process study, total-factor rearrangement and all-dimension investigation, rather than simply based on the main gas source. From the very first appearance of gas in China to the foundation of the new China, the artificial gas was the only source of urban gas, and urban gas was closely linked with colonialism and developed in certain areas. From the establishment of the new China to the national work conference on city gas in 1984, the national gas policy was absent, and natural gas and LPG began to join urban gas gradually, leading to the positive transformation of the gas source structure. From the end of the national work conference to 2002, the policy for development of urban gas was gradually formed, and multiple gas sources grew together rapidly, changing the gas source structure dominated by artificial gas greatly. Nowadays, considering the competition among diversified investors and the emerging of collectivization, the development of urban gas in current stage is mainly characterized by the dominance of natural gas. Internal demands, policy guidance and resource guarantee are key factors in the development of urban gas.