Tigers boss Peter Taylor said afterwards: "I was happy with the way we played today. It was a very committed local derby, fast and physical from two good sides."
Home manager Brian Laws was delighted to see his side extend their unbeaten run to 13 games and commented: "This was everything you expect from a local derby, but it could have been so different in the opening seconds if Elliott had scored for City."
Scunthorpe certainly had the better opening 45 minutes and they found Paul Musselwhite, a former Iron player, denying them on three occasions.
Stuart Elliott could not believe his luck in the opening seconds when a deep cross from Andy Dawson allowed him to run through but he steered a good chance wide of the target.
Scunthorpe were easily the better side and Musselwhite flung himself to his right to palm away a brilliant shot from Kevin Sharp.
Veteran winger Peter Beagrie forced the keeper to push another shot away into the path of Terry Barwick whose shot was deflected wide.
Just on the interval Steven MacLean drove in a shot which was again brilliantly saved by Musselwhite.
After Steve Torpey had driven a shot straight at the City keeper following the break the Tigers began to look dangerous with Dean Keates and Ben Burgess denied by Tommy Evans.
The deadlock was broken after 64 minutes. Referee Peter Walton adjudged that Damien Delaney bundled MacLean off the ball in the penalty area and Beagrie stepped up to drive in the spot kick after 64 minutes.
Seven minutes later, City were back on level terms when Elliott was allowed the freedom of the park on the left hand side and he raced in to drive home past Evans.
Scunthorpe's keeper was then under pressure with a ball from Elliott which was right underneath the crossbar and then as Jason Price forced his way through it took a first-class block from young Scunthorpe star Andy Butler to race in and clear the danger.