Water and land (W -L) resources become even more important in the context of urban -rural integration in China ' s arid northwest region in order to achieve sustainable development goals (SDGs). Our study used Gini coefficients to examine the relationship between natural resources and economic development in China ' s Xinjiang Uygur Autonomous Region. Cobb -Douglas (C -D) production functions were used to determine the economic impacts of W -L resources on rural -urban economic development. We also examined the spatiotemporal interaction characteristics of the growth drag effect of W -L resources. As a result of the decline in Gini coefficients between 2000 and 2020, Xinjiang experienced a decrease in water resources, land resources, and urban -rural GDP (gross domestic product). The output elasticities of urban -rural land and water resources were 0.3544 and 0.4790, respectively, whereas the output elasticities of urban -rural land resources were 0.1501 and 0.2185, respectively. As a result, water resources contribute to the growth of urban -rural GDP more than land resources, and W -L resources contribute to the economic development of rural areas more than it does to that of urban areas. Land resources were found to have a drag effect on urban and rural economies, respectively, in 7 and 56 counties, respectively, and water resources were found to have a drag effect on urban and rural economies, respectively, in 67 and 58 counties. In Xinjiang, water resources contributed more to economic growth than land resources. Even though W -L resources still have a drag effect on urban -rural economic growth, we can gain greater driving force by optimizing and improving resource use. However, this requires an optimal allocation and efficient use of water resources.