This paper clarifies the location of the settlement, residential environment, local culture, and way of living of Taiwan people residing in the Nagura and Takeda settlements in Ishigaki Island of the Yaeyama Islands, from the perspectives of settlement, way of life, and community. Due to various historical factors, Ishigaki Island has witnessed the phenomena of village building, deserted villages, and village transferring. Further, depending on the generation, the location, size of the settlement and the number of settlements has changed drastically. How have the people of Taiwan who had migrated and come from outside the island in the early Showa period built their residential environments and thus inherited their ethnic identity in the environment described above? Through field surveys and using historical documents and materials, this paper explores the historical transitions and way of life in Ishigaki Island.