This paper studies the feasibility of 700 MHz band inter-vehicle communication system when it is put into practical use in urban area. To verify the system, a large-scale demonstration experiment in a quasi-street test course is performed. In the experiment, a number of vehicles which are equipped with communication devices conforming to ITS FORUM RC-006 specifications are employed. A simulation method that is applicable to large-scale communication model is also designed, and the validity of the method is verified by utilizing the results derived from the experiment. Based on this model, the quality of the inter-vehicle communication system in urban area communication environment is estimated. The results show that the system's performance satisfies the requirements of representative prevention scenes of traffic accident, and the feasibility of the 700 MHz band inter-vehicle communication system specified in RC-006 is verified in the practical use in urban communication environment.