Function of renewable resource-based cities is a main indicator of industrial structure, and the transformation of industrial structure causes the evolution of the functions of such cities. Using the method of locational remoteness and entropy weight TOPSIS, the functional heterogeneity characteristics and evolution paths of China’s renewable resource-based cities from 2005 to 2016 were studied. The promoting role of industrial structures in the evolution of their urban functions was also discussed. The results show that: (1) The functions of the studied cities have continued to improve, but the co-evolution pattern of each sub-function has not yet been formed. However, the resource exploitation function has declined significantly. The industrial manufacturing and science and education innovation functions have continuously increased. In particular, there are significant differences in the functions of industrial manufacturing and concentrated radiation. Among these cities, the mature and developing cities are characterized both by strong industrial manufacturing and weak resource exploitation, while cities at the initial stage of development have strong ecological security functions and clear differences among sub-functions. (2) The functions of the studied cities have diversified and mainly are based on ecological security-industrial manufacturing overall. However, the evolutionary path is heterogeneous. The mature cities are characterized by multi-dimensional balanced change. The developing cities are characterized by dual functions of resource exploitation and concentrated radiation. The cities at the initial stage of development show an unbalanced and multi-functional dominant change trend. (3) The differences in the functional evolution paths of China’s renewable resource-based cities are driven by the heterogeneity of industrial structure transformation. For China’s renewable resource-based cities, the higher the level of industrial structure’s diversification, advancement, greening, and service, the more comprehensive its functions will be. The evolution of city functions also affects the speed of industrial structure transformation. The degree of advanced industrial structure in cities with strong comprehensive functions is higher, and vice versa.