According to rising social and environmental concerns, the number of small-scale oil mills growing and milling rapeseed has increased over the past decade. This study was undertaken to clarify small-scale rapeseed oil mill production, which is under pressure from mass-produced vegetable oil, and propose the application of this community-based system to developing nations. We analyzed all domestic rapeseed oil mills between 2009 and 2011, and discussed the transition from traditional mills to newly established town office-sponsored mills and its effect on the rural economy. We clarified that small-scale oil mills in rural areas have survived through strong self-sufficient production and have restructured into self-managing local communal businesses. This restructuring of local rapeseed production has had a positive effect on the local community and has revitalized the rural economy. Thus, we concluded that it may be suitable for microcredit in developing nations.