Many problems exist in the urbanization of medium-sized cities, such as, low functional strength, uncoordinated industries, not strong economic support, weak carrying capacity and radiation force, small urban scale, not close contact with big cities and small cities, towns. The aim of new urbanization should be to achieve healthy development of urbanization. Some specific methods and measures are proposed on construction of new urbanization in medium-sized cities, such as, cumulative and circulating development of industry and agriculture, coordinating urban and rural areas, optimizing the allocation of resources by the institutional innovation and the layout of urban system, strengthening public services in urban and rural areas, setting circulating and replacement system of urban and rural land, improving methods of the performance appraisal, constructing new professional towns of characteristic and various types of agricultural industrial parks, which are specifically described with an example of Xiaogan.