Industrial development is the supporting force for promoting China’s new urbanization. This paper aims to explore the balanced development process and practical mechanism of local urbanization based on the practice of agricultural revitalization in rural areas in Southwest Shandong. The study found that the revitalization of the agricultural industry in Southwest Shandong accelerated the process of rural urbanization， and the local urbanization based on the development of agricultural industrialization constituted an alternative for farmers to “migrating to the city”， The practice of local urbanization is shaped by the family organization mechanism， together with the government service mechanism that meets the needs of daily life and the dynamic professionalization mechanism that integrates farmers’ transformation and village development goals， which also contributes to balanced development of urbanization. Therefore， it is concluded that balanced urbanization development can be achieved by relying on the path of agricultural industrialization and the key is to realize the integration of farmers as the agents of practice and villages as the site where the construction takes place.