Integrated Resorts (hearafter, IR) provides facilities for multiple purposes such as recreation, dining, shopping, conventions and gambling. Many countries have already established IR and expect to obtained positive effects on the development of economy. The development of IR involves many stakeholders and brings impact on many factors. These factors are closely related and have a dynamic and complex characteristic. This study applies System Dynamics to develop a system dynamic analysis pattern in which the government, residents and IR investors are concerned from a macro perspective. Penghu will be the study case to proceed with the simulation and policy analysis. The study will also explore the changes brought by IR management policy and infrastructure policy respectively to the number of tourists, IR net profit margin and residents' support. It aims to provide the policy makers with references and recommendations.