Abstract: As an important part of characteristic towns, the agricultural characteristic towns are the new driving forces for promoting the agricultural supply-side structural reform, an important combination point for promoting the urban-rural integrative development, and an important part for realizing the rural revitalization strategy and securing a decisive victory in building a moderately prosperous society in all respects. As the construction of characteristic towns advanced to the whole and the depth, the agricultural characteristic towns, represented by the rural innovation towns, have showed their progressiveness and adaptability in promoting the rural development. By taking Xiaogang Village as an example, the development mechanism of rural innovation towns in Xiaogang Village and the development foundation of Xiaogang Village under the jointly actions of endogenous factors and external factors were analyzed in depth. The current problems existed in the construction of rural innovation towns in Xiaogang Village, such as the insufficient cultural excavation, insufficient transformation capacity of innovation accumulation, insufficient participation of market resources, and the need for further optimization of the integration of tertiary industry was analyzed. The countermeasures for promoting the characteristic development of Xiaogang Village were put forward including strengthening the planning guidance by enhancing the orientation of the cultural added value, upgrading the overall level of industry by promoting the innovation agglomeration and transformation, optimizing the integration of two-way industrial chain by extending the industrial chain, and strengthening the team construction by attracting the high-quality talents, etc.