Traffic economic belt (TEB) is a kind of belt shaped regional economic organization system, which aggregates industries, population, resources, information, cities and towns, interflows of passenger, interflows of goods and so on. In the paper, the author explored the development mechanism of the traffic economic belt firstly. The author points out that three basic factorsal are essential to the formation of TEB: the traffic trunk line, group of towns, and the industrial system based on the secondary industry and the tertiary industry. The traffic trunk line is a basic premise of the development of TEB. The large and medium sized cities and group of towns with advantageous location tend to play such critical roles as those of growth cores to support the development of TEB. The aggregation and diffusion of industries and the evolution and promotion of industrial structure are important factors to maintain TEB and motivate its development. Then the author analyzes the spatial process of concentration and distribution of industries along the traffic trunk line. In the analysis, the basic theories concerning the industrial wave have been introduced. Based on empirical studies of the dynamics of textile industry, metallurgical industry and petrochemical industry in the Yangtze River delta region, the author explores the relationship between the development of traffic economic belt and the dynamics of industrial wave. The paper is ended with author’s conclusions on the spatial pattern of industrial wave.