Cleaner Production (CP) is the main measure for us to eliminate and reduce the industrial pollution and achieve “Sustainable Development”. With the implementation of the CP in our country, it becomes necessary to establish indicator systems for CP assessment. The assessment of CP can be practised in an enterprise, an industry or a city.We think the progress of CP in a city is attributed to the changes in such six aspects as the emission of industry wastes, the modern technology adopted in enterprises, the quality of economic development, the construction of fundamental environmental-structure, the constitution and implement of policies and regulations about CP, and CP awareness and education in public, so the indicator system for a city should include these six factors. Moreover, we have selected 24 sub-factors to build the CP indicator system. This system can impersonally reveal the actual state and progress of CP in Shanghai and help us promote CP in the future.