The ideal goal for every country is to reduce poverty, improve the life of citizens and in short attain more welfare and prosperity for the people.Certainly reaching these goals needs a sustainable development and consideration of all aspects and determinants of development simultaneously, with particular attention to human beings, since they are the objective and at the same time the basic tool for development. Based on the aforementioned fats this paper tries to present a brief discussion on the structure of human development, Human Development Index (HDI) and its major components as well as presenting more suggestions for the improvement of this measure to be more realistic for ranking Iran's provinces in terms of human development. Basically using the income data and even income per capita data in developing countries particularly at the province level is not reliable and may cause some biases in the ranking results. Therefore, we will try to illustrate that the consumption data is much more reliable and more appropriate for Human Development Index. The results of the study, based on 2001 statistical data, including income shows that Tehran, Kohkiluye and Boyer Ahmad, Khuzestan, Isfehan and Yazd are at the top of the list in terms of HDI. By considering the consumption data in the measurement of DHI, the results changed and provinces of Theran, Isfehan, Gilan, Yazd and Semnan appeared on the top of the list. Due to data limitations we were able to calculate only Gender Related Development Index (GDI) and according to this measurement and our mentioned approach, provinces of Tehran, Gilan, Isfehan, Yazd and Mazandam were seen at the top since they have a lower level of inequality based on gender in comparisons ti other provinces.