Abstract
As important carriers of local economy and culture, characteristic towns not only embody rich history and culture but also bring new opportunities for regional development. This study conducts a comparative analysis of the development trajectories of two characteristic towns in Japan: Beppu in Oita Prefecture and Lake Tazawa. Beppu has achieved sustainable development through its abundant hot spring resources and diversified tourism industry, whereas Lake Tazawa faces developmental stagnation due to a lack of innovation and ineffective market promotion. The research identifies resource endowment, community participation, infrastructure development, marketing strategies, and innovation capacity as key factors influencing the development of characteristic towns. By summarizing the experiences and lessons of these two cases, the study provides valuable insights into the planning and construction of characteristic towns in other countries.