This paper has measured and calculated the industrial water use efficiency among Chinas thirty provinces and cities during the year 2005—2014 by applying the SBM-DEA(slack based measure-data envelopment analysis)model which considers undesirable outputs. The characteristics of spatial association of industrial water use efficiency in China has also been quantitatively investigated with the ESDA method. Study results show that: The average value of industrial water use efficiency in China has been increasing year by year from 2007, on the whole showing the tendency that the said average value of the eastern region is bigger than that both in the middle region and the western region. The industrial water use efficiency of the related provinces and municipalities has significant spatial positive correlation in 10 years. The districts with high and low efficiency in industrial water use in the adjacent areas have displayed the phenomenon of being relatively gathered together. High-high concentration areas are mainly distributed in the eastern region and low-low concentration areas are mainly distributed in the western region. Therefore, different provinces and cities have different ways and potentials to improve the efficiency of industrial water use, so the policy of differentiation should be formulated from the actual situation so as to enhance the efficiency of industrial water use.