In a traveling vehicle system, traveling vehicles travel along a travel route under the control of at least one controller. Each of the traveling vehicles includes a first traveling vehicle position determining section arranged to determine a position of the respective traveling vehicle, and a second traveling vehicle position determining section arranged to determine a position of at least one other of the traveling vehicles by communication, and a distance sensor arranged to detect a distance between the respective traveling vehicle and the at least one other of the traveling vehicles. The at least one controller and the traveling vehicles are configured to control velocities of the traveling vehicles in an inter-vehicle control area by determining inter-vehicle distances between the traveling vehicles based on the position of the at least one other of the traveling vehicles obtained by the communication in the second traveling vehicle position determining section, and the position of the respective traveling vehicle determined by the first traveling vehicle position determining section, and to control the velocities of the traveling vehicles in areas of the traveling route other than in the inter-vehicle control area based on distances detected by the distance sensor.