The core subject of this essay is mainly the belief of Avalokitesvara in the township of Taucheng. The main starting points are the development of the township and the beginning and history of the belief of Avalokitesvara; reference was made of the various local annals and records, literature, feature books, newspapers and magazines, essays in periodicals, and temple publications. Further, field studies were conducted employing semi-structured interviews; by checking the verbal recollections of local elders against those of temple staff, the development of the Taucheng area and the evolution of the belief of Avalokitesvara are examined, so as to understand the relations between the belief of Avalokitesvara and the development of the Taucheng area. In the development of the Yilan area, Taucheng Township was the first to be settled by Han immigrants, and it was the entry and exit point of both water and land transport as well as a trading port. Taucheng therefore became an important centre of communication and business. Since Wu Sha led the immigrants of the three counties to settle there over two hundred years ago, there have been numerous disasters, both natural and man-made; and in the face of life’s helplessness and uneasiness, people could only seek solace in religion, and thus came the belief of Avalokitesvara in Taucheng area. The system of belief arisen in the immigrants’ community brought about the emergence of different sects of immigrant belief that was the result of racial amalgamation. Among the various sects of belief, the belief of Avalokitesvara, being the result of displaced Han people in Taiwan seeking spiritual comfort, has risen as a mode of belief that is difference from the Buddhist religion. During the Japanese occupation, Japanese immigrants to Taiwan brought with them the belief of Stone Avalokitesvara. Following the restitution of Taiwan, large numbers of monks came to Taiwan from Fujian and Guangdong, bringing with them orthodox Buddhist belief and doctrines, a new look of Buddhism appeared. However, there still exist different modes of belief. How the three systems of belief developed and in the mean time influenced each other is a subject very much worth in-depth study. Avalokitesvara is an extremely common deity worshipped in Taiwan; the Bodhisattva Avalokitesvara is always present in temples of all sizes. From the common saying of “Amitoba in every home and Avalokitesvara every household”, it can be seen how common is the belief of Avalokitesvara. In the Chapter of the Universal Door of the Bodhisattva Avalokitesvara in the Lotus Sutra, there is the provision that “sincere chanting (of the name of Avalokitesvara) will bring salvation”; it seems that every hardship and suffering will be cast away by chanting the name of the Bodhisattva Avalokitesvara, and all wishes granted.