This article is a criticism on Bobek's Rentcapitalism Theory and on the other hand is presenting a new theory to answer the questions about rapid development of Urbanization in Iran. Bobek believed that urban development in Iran was the result of capital accumulation which comes from commercialization of agricultural products in cities. It seems that he overlooked the dominant role of state in the Iranian urban development. Since Land Reform in 1960' s, the relation of landlords and rural areas was interrupted therefore they could not transfer their shares from land to the cities. In the modern period, which means after the constitutional revolution, the government had access to oil incomes and established a new position. The new government has paid for infrastructure and developing projects and also other payments in the cities. In addition, it tried to commercialize capital in the cities. This theory is going to explain the mechanism of rapid development and urbanization trend in Iran and the role of state in this process.