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The environmental effects of the urban agglomeration planning policy (UAPP) are an exploration by rapidly developing China and a concern for countries seeking development and urban reform around the world. This paper takes the three regional urban agglomerations in the Yellow River Basin (YRB) as the research object and collects the panel data of 106 prefecture-level cities from 2006 to 2019 to study the reduction effects of UAPP on the industrial wastewater discharge (IWD). The empirical results from Difference-in-Differences models indicate that UAPP can significantly inhibit IWD. UAPP reduces IWD by promoting green innovation, and the development of service industries can strengthen this effect. UAPP shows a stronger IWD reduction effect in the northeast YRB than that in the southwest region. Compared to urban agglomerations with a single provincial jurisdiction, UAPP exerts stronger IWD reduction effects on urban agglomerations with multiple jurisdictions. Moreover, there exist spatial spillover effects of UAPP on IWD. These findings provide support and references for urban reform and the development of green cities in countries around the world, especially in developing countries. • Urban agglomeration planning policies can reduce industrial wastewater discharge. • Green innovation is the main intermediary factor. • Service industry development strengthens the discharge reduction effects. • The discharge reduction effects are stronger with multiple jurisdictions. • There exist spatial spillover effects of the discharge reduction effects. [ABSTRACT FROM AUTHOR]