We demonstrate, both theoretically and experimentally, that cation vacancy can be the origin of ferromagnetism in intrinsic dilute magnetic semiconductors. The vacancies can be controlled to tune the ferromagnetism. Using Li-doped ZnO as an example, we found that while Li itself is nonmagnetic, it generates holes in ZnO, and its presence reduces the formation energy of Zn vacancy, and thereby stabilizes the zinc vacancy. Room temperature ferromagnetism with p type conduction was observed in pulsed laser deposited ZnO:Li films with certain doping concentration and oxygen partial pressure.