The gross output value of township enterprises (XGDP) is used as a variable of township enterprises development. And CXEY is a variable of urban-rural dual economic structure. According to the 1986-2006 Statistical Yearbook of Chinese Township Enterprises and the 2006 China Statistical Yearbook, effects of the development of township enterprises on the urban-rural dual economic structure are studied by the cointegration analysis. Result shows that without considering other influencing factors, township enterprise development in the years 1979-2005 is the key factor to improve the dual economic structure in urban and rural areas in China.