Abstarct: The aim of this study is to investigate the factors affecting the value added of Iranian Manufacturing Industries. Due to the importance of water, the role of water consumption intensity on value added in Iranian industries is one of the main objectives of this study. In order to investigate the nonlinear relationship between the effect of water consumption intensity on value added of industries as one of the factors affecting the value added of Iranian factories the panel smooth transition regression model (PSTR) for or selected industries in Iran with 4-digit ISIC codes for 2008-2017 used. The results showed that the intensity of water consumption before the first threshold and between the first and second thresholds and after the second threshold had a positive and significant effect on the value added of selected industries during the period. This issue also shows the importance of paying attention to water consumption and the need to save and adopt the necessary policies for water management. On the other hand, according to the results of estimating the impact of investment and labor on value added during the period has been positive and significant.