This paper, from the sustainable development point of view, defined the environmental protection, rehabilitation, maintenance and the directly correlated service activities as Environmental Industry, investigated the meaning, development course, operation mechanism as well as the position and role of Environmental Industry in the industrial system and pointed out that the Environmental Industry was generated and developed compulsively by the government under the protection of rule of law, which was also the indispensable part of industrial system. Considering the impact of natural environment on the social behaviors, the key point to accelerate the development of Environmental Industry is to ameliorate the governmental actions.