This paper is to reclassify systematically the functions of urban river: that is, water supply, land management, transportation and energy source as social and economic function; formation of geomorphic surface, water-side landscape, community constitution and boundary and separation between regions as spatial function; and drainage of waste water, purification, habitation, and weather regulation as ecological function. On the basis of this reclassification, it can be argued that the socio-economic functions (eg. water supply) of the river among the functions of the river have been strongly mobilized in the process of modernization, while the spatial function and ecological function of urban river have been ignored. The Kumho river which flows through Daegu and the adjacent area has made a great contribution to the modem development process of the river basin area, but as a result of a selective development of a specific function of the river, that is the social and economic function, it now suffers from the lack of instream flow and is deprived of its original functions with the water pollution and degradation. Moreover the Daegu region seems no longer possible to develop on the dependence of the river. In order to overcome this kind of social and environmental crisis, this paper is to suggest both some principles and main evaluating indicators to restore the original and comprehensive functions of the river, and important measures to make the co-evolution of the city and the river possible.