Abstract: The Yangtze River Delta is one of the most dynamic regions in China′s economic development, with a high degree of openness and strong innovation capabilities. It boasts a comprehensive industrial system and a well-developed industrial chain. Exploring the relationship between water consumption and CO₂ emissions in this region′s industrial sector is crucial for promoting China′s transition to green, low-carbon, and high-quality development. This study analyzes trends in water use and CO₂ emissions in the industrial sector of the Yangtze River Delta, utilizing the coupling coordination degree and LMDI index decomposition method for quantitative analysis. The results indicate that: (1) Industrial water consumption in the Yangtze River Delta has recently reversed a long-term decline, while total CO₂ emissions in the industrial sector continue to rise, though carbon intensity has decreased rapidly in recent years. (2) From 2010 to 2021, the coupling coordination degree of water conservation and carbon emission reduction in the region has improved significantly, evolving from a barely level to the good level, but it fell back to the primary level in 2021. (3) The industrial output rate has consistently been the most important driving factor for the increase of CO₂ emissions in the industrial sector. The carbon emission intensity of energy consumption has not effectively suppressed industrial CO₂ emissions in the long term, indicating significant optimization potential in the industrial energy consumption structure. Jiangsu Province differs greatly from the other three provinces and cities, having the most pronounced effect on reducing industrial carbon emission intensity, with carbon emissions driven by both the water use structure and industrial output rate. (4) The provinces and cities in the Yangtze River Delta region should focus on the green and low-carbon transformation of their industrial energy consumption structure, promoting electric energy substitutes such as industrial heat pumps and electric furnaces to reduce fossil energy consumption, CO₂ emissions, and water resource usage. Jiangsu Province may consider piloting special initiatives for the synergistic control of water conservation and carbon emission reduction in industries such as electricity and steel. Shanghai, Zhejiang Province and Anhui Province can take the lead in implementing dual industry carbon emission controls and intensity control of water usage for industries such as power supply and chemicals. This research reveals significant improvements in the coordinated advancement of water conservation and CO₂ reduction in the industrial sector of the Yangtze River Delta region, although each province still faces considerable challenges. Further in-depth research on the relationship between water and carbon in the industrial sector is needed to accurately identify policy leverage points.