The problem of nonlinear adjustment of localized front-like perturbations to a state of geostrophic equilibrium (balanced state) is studied in the framework of rotating shallow-water equations with no dependence on the along-front coordinate. We work in Lagrangian coordinates, which turns out to be conceptually and technically advantageous. First, a perturbation approach in the cross-front Rossby number is developed and splitting of the motion into slow and fast components is demonstrated for non-negative potential vorticities. We then give a non-perturbative proof of existence and uniqueness of the adjusted state, again for configurations with non-negative initial potential vorticities. We prove that wave trapping is impossible within this adjusted state and, hence, adjustment is always complete for small enough departures from balance. However, we show that retarded adjustment occurs if the adjusted state admits quasi-stationary states decaying via tunnelling across a potential barrier. A description of finite-amplitude periodic nonlinear waves known to exist in configurations with constant potential vorticity in this model is given in terms of Lagrangian variables. Finally, shock formation is analysed and semi-quantitative criteria based on the values of initial gradients and the relative vorticity of initial states are established for wave breaking showing, again, essential differences between the regions of positive and negative vorticity.