Ethnic towns in China are always special and important. Their rich natural and cultural resources and relatively poor conditions make their development different. This research constructs an integrated development model of town-industry-education (TIE) for ethnic towns in China. The case of Pengshui is presented to illustrate the details of this model. Chiyou Jiuli town, ethnic tourism industry, and Chongqing Vocational Institute of Tourism formed an integration of TIE in their development. Some closely related elements form the basis of their integration and some similar driving forces motivate the formation of their integration. Through the operating platform of Jiuli Ordered Class, their integration could benefit all the participants and contribute to local economic and social development. This model helps to make use of local resources and improve local development levels. Considering the rapid development of society, further studies are needed to apply this model to more regions and include various institutions.