Agricultural sector taking into account its role in GNP (11%), employment opportunities (23%) and food provision (over 80%) performs a critical role in Iranian economy. Water resources are being considered as a very prominent factor with respect to agricultural sector. This study aims to investigate effective indicators regarding agriculture development as well as water management in Tabriz plain. It is based on factor analysis. Statistical society is composed of 39 villages. Data gathering technique is predominately based on questionnaire and documentation. It is further supported by getting information from ministries of agriculture and water organization. This is followed by determination of 25 indicators for the assessment of agricultural development and 11 indicators regarding water management of the study area. Deducting the number of variables requires the application of principle component analysis. This study suggests that mechanization, cropping based on irrigation system, structure and performance are capable of explaining 79 percent of the variations pertaining to agricultural development. It is argued that surface water, deep wells, semi deep wells explain 61 percent of the variations regarding water management as well. It further suggests that those counties with comparative advantages with respect to agricultural products and simultaneously not experiencing water deficiency should emphasize agricultural plans based on high priority crops. However, those encountering with agricultural problems should stress optimum resource usages and preservationissue.