The paper aims at studying level of development of the Iranian provinces in 2011 and consequently analyzing its co-relationship with geographical potentials of the provinces taking into account factors like health, education, culture, economy, housing and other infrastructures. As the findings of the papers indicate there is an uneven co-relationship between geographical potentials and level of development of the Iranian provinces. For instances, provinces like Yazd, Semnan and Kerman, with low level of potentials, enjoy 6. 1, 1. 5 and 1. 48 co-relationship of development respectively and so have second, third and fourth level of development. Therefore, one can conclude that due to wrong employment, the geographical potentials play little role in development of the regions, thus proving a weak co-relationship between them.