Worcester travel to Kingsholm on Sunday seeking their first victory of the season, at the 10th attempt.
The Warriors sit rock-bottom in the league, and rugby director Dean Ryan makes his first coaching return to Kingsholm since his unceremonious 2009 exit.
Former Gloucester coach Carl Hogg will also return to face the Cherry and Whites, and both ex-Kingsholm men will be desperate to kick-start Worcester's season.
Gloucester rugby director Davies knows local derby pride is on the line, but he said his side's own faltering form means they need the win even more than Worcester.
"It's the biggest game of the season, every game is now a cup final," Davies told the Gloucester Citizen.
Gloucester's last Premiership win came back on September 29, a 22-16 victory at Newcastle Falcons.
Former Wales centre Davies said his charges can ill afford any further slip-ups.
Gloucester sit 10th in the table, 11 points ahead of beleaguered Worcester but still battling for ballast themselves.
A season that started with play-off ambitions is now entirely on the line, admitted the former Scarlets boss.
"Lots of people have said how big this is for Worcester and how it's their local derby but it's a bigger game for us - it's absolutely huge," Davies continued.
"We have a very frustrated group of players, coaches and staff here because we felt we had been making progress and moving forward."
After morale-boosting Heineken Cup victory in Edinburgh on December 8, Gloucester promptly lost the return clash at Kingsholm last weekend.
Davies said it is time the club break their cycle of failing to capitalise on their measured improvements.
"It's a well-worn path and we keep saying these things but it's time we start getting results.
"We're not far away and we need to turn these 50-50 opportunities into more positive outcomes.
"Ranting and raving can help but ultimately we have to unleash our frustrations on the opposition.
"We've had a pretty physical week but it's about getting the accuracy and mindset right."