Today, the oil industry development is the main subjects for economic–social development program in developing country such as Iran. Oil as the main raw material and energy supply in the world is important. This industry as a new strategy for tackle to unemployment, with activities such as agriculture and manufacturing industries in village, could be an important strategy for the development of villages and prevent of migration of villagers in to cities. Rural developments in Iran, especially after the land reform led to a massive migration to the cities and the decline of traditional rural activities. Thus to attention this facts, is inevitable recommendation, require the use of new strategies to generate income supplement activities in villages, such as using the industry. The aim of this research was impact assessment of oil industry activities in rural areas ( lavan island ). The research was conducted in the form of survey study. The population of the study included in two sectors: the managers and rural resident in Lavan island. The necessary data for this research was collected squarely by 150 (with the use of Cochran formula).This rural resident lived on the Lavan island befor 1990 were sampled by using random sampling method. The reliability of questionnaire was calculated by cronbach alpha coefficient for different sections after conducting a pilot study for each structure separately calculated: economic factor 0.96, social factor 0.944, culture factor 0.95, environmental factors 0.928, physical factors 0.938, respectively. The results of this research showed that the oil industry could be improved the rural development process in rural areas. The factor analysis result showed that the effects of oil industry development could be separate in two subjects: backward factors and forward factors. The results of this research showed that the forward factors of oil industry in Lavan island included to: economic, social, cultural and physical factors that four factors have explained 62% of total variance. In social factors loaded: improvement the education, improvement the internet services, improvement the relief committee services. In economic factors loaded: coming the skilled workers in the region, oil industry employment, improvement of public investment. In cultural factors loaded: decrease of conflict and improve the family relationships. In physical factors loaded: improve the access in sweet water and improved the access to electricity. The results of this research showed that the backward factors of oil industry in Lavan island included to: economic, social, cultural, environmental and physical factors that five factors have explained 69% of total variance. In physical factors loaded: lack of suitable development of air traort services, lack of suitable development of peoples participation, lack of suitable development of health services, lack of suitable development of health services in oil industry, lack of suitable development of housing, lack of suitable development of public places. In social factors loaded: decrease of security, rural migration, decrease of informal education, migration of skilled and unskilled workers. In cultural factors loaded: the increase of inequality, the increase of addiction, increasing piracy, lack of suitable development printing press and local radio and television. In environmental factors loaded: the increase of groundwater, noise, air, soil and seawater pollution. In economic factors loaded: the lack of animal husbandry development, lack of suitable development of pearling ravin, loss of saving, lack of adequate investment in the private sector. Keywords: Lavan island, Oil industry, Rural development, Industrial development, Local development.