Economic development of a remote, mountainous region poses a challenge anywhere. Based on field research and documentary evidence, this article examines how such a development challenge has been addressed in Daocheng county, Ganzi Tibetan Autonomous Prefecture, Sichuan province. In doing so, it investigates the different forms of economic development, how such development comes about, and the role played by government in economic development. The article also probes the broader socioeconomic consequences of economic development. The fact that Daocheng is a predominantly Tibetan county adds a nationality dimension to the issue of economic development.