How can we uncover the natural communities in a real network that allows insight into its underlying structure and also potential functions? In this paper, we introduce a new community detection algorithm, called Attractor, which automatically spots the communities or groups in a network over time via local dynamic interaction. The basic idea is to envision a network as a dynamical system, and each agent interacts with its local partners. Instead of investigating the node dynamics, we actually examine the change of "distances" among linked nodes. As time evolves, these distances will be shrunk or stretched gradually based on their topological structures. Finally all distances among linked nodes will converge into a stable pattern, and communities can be intuitively identified. Thanks to the dynamic viewpoint of community detection, Attractor has several potential attractive properties: (a) Attractor provides an intuitive solution to analyze the community structure of a network, and faithfully captures the natural communities (with high quality). (b) Owing to its time complexity $O(|E|)$, Attractor allows finding communities on large networks. (c) The small communities or anomalies, usually existing in real-world networks, can be well pinpointed. (d) Attractor is easy to parameterize, since there is no need to specify the number of clusters. Extensive experiments on synthetic and real-world networks further demonstrate the effectiveness and efficiency of the proposed approach.