In order to cope with the problems and new challenges arising from the application of Internet of Things (IoT) technology in urban management and to put forward corresponding administrative regulations, this paper explains the concept of IoT technology. And put forward the Internet of Things, radio frequency identification, wireless sensor networks, and other key technologies as the main level of the system architecture. Also, the perception layer, network layer, and application layer are the main levels of the system architecture. At the same time, it explains the specific characteristics of IOT technology and its specific applications in urban planning, transportation, medical care, family, and agricultural management. Zhoushan City, Zhejiang Province, China is chosen as the research object to analyze the application of IoT technology in urban management. The overall index score of Zhoushan City’s IoT city management construction is mainly concentrated between 60% and 70%, in which the scoring rate of the secondary indexes under the first-level index of the city’s intelligent governance regulations is relatively low, all below the 62% level, with an average value of less than 4. In the problem of information silos and shortage of talent, the mainstream opinions of Zhoushan City’s residents are “IoT applications are numerous and complex” and “lack of IoT applications”, respectively. In the problem of information silo and talent shortage, the mainstream views of Zhoushan residents are “the variety and complexity of IoT applications” and “the lack of protection mechanism for talents”, accounting for 68.64% and 58.12%, respectively, and 68.87% of the residents have not used IoT applications.