Urbanization in the state farms is a special kind of urbanization type. This paper selected Baoquanling, Hongxinglong, Jiansanjiang and Mudanjiang in Sanjiang plain as the study objects, analyzed the urbanization evolution and current characteristics of the state farm towns from the key elements of industrial structure, development of industry and service, population aggregation and employment structure. Based on the issues above, development ideas and strategies for urbanization in the state farms had been proposed. Firstly, urbanization development should turn from pursuit of the scale expansion to improve the quality, especially strengthening the construction of functions in the cities and towns; secondly, we should speed up the transformation from modern agriculture to new industry and modern service industry and accelerate non-agricultural industry into towns and cities while promoting the agricultural modernization; thirdly, we ought to establish and improve the internal mechanism of promoting urbanization from government-led to tripartite force-led of the government, market and society. And finally, it is necessary to promote urbanization system innovation in order to clear the system obstacles for urbanization development in the state farms area.