The demonstration effect triggered by the construction of Zhejiang’s characteristic towns has attracted attention and learning from all over the country, and has set off a boom in building characteristic towns across the country. Under the dual constraints of industrial development and resource intensive use, the undeveloped areas of central China must find suitable development paths for characteristic towns. Taking Yichun City as an example, this article analyzes the advantages of Yichun City for developing characteristic towns combining its natural and economic conditions. In addition, the characteristic town development paths, such as vigorously promoting the construction of urban facilities, highlighting the characteristics relying on existing small towns, constructing an industrial chain of “ecology + leisure”, highlighting cultural charm, and improving development grade, are proposed to provide useful reference for the development of characteristic towns in this type of underdeveloped cities in central China.