Local government and people pursue local development in an all round way——material civilization and culture. At the turn of China market economy system construction, there is overall competition in production, service and their quality. The local time of development, based on the competition, is coming. From the basic concept of Local Identity System (LIS), this paper discusses the relationship between local development and LIS, and explains their characteristics of stages, interrelation, effectiveness. Then the idea on local identity system is formed, that includes rules, visual elements and projects of local identity system. Local identity system is a key to make locality rich and prosperous. Therefore, local identity system is the course of local development planning and management.