City is the focus of logistics, passenger flow and information flow, and the unity of a large number of material and spiritual entities in a narrow geographical range. Cities can gather a large number of people, buildings and social and economic activities in a small area, all depend on a good location. When a region needs a city and where it is born, the decisive factor is location. A city, as long as it has a good location, can be quickly rebuilt after natural and man-made disasters. Based on the geographical location of the city, this paper discusses the natural resources, time difference and traffic respectively, and with examples of different cities are given in detail. This paper discusses the impacts of geographical location on urban development on different aspects, from natural resources, time difference and traffic. Those are factors can be determined by the geographical location of cities. Iceland benefits from superior geographical location with abundant natural resources, while Saudi Arabia suffers from poor geographical location with limited clean water supply. Bangalore enjoys the perfect time difference with United States. Zhengzhou and Guangzhou are in superb geographical locations in terms of convenient transportation. This paper concluded that geographical location plays a great role in promoting economic growth and potential urban development.