Supported by my ethnographical findings in Qiaohou Town—a town inhabited by indigenous minority Bai People in southwest China, this paper aims to analyse the structure and the mechanism of local transcultural religious phenomena, reflecting and criticising the cultural configuration of modern multiculturalism which is currently prevalent and popular in the contemporary Western social and political contexts. Firstly, I introduce the geographical, historical, and economic contexts of religious diversity in Qiaohou Town. Secondly, in order to elaborate how different religious elements which are originated from highly diverse religions, beliefs, or practices—like Buddhism, Taoism, Confucianism, and folk beliefs (e.g. indigenous patron worship, spirit worship, ancestor worship, and fire God worship)—are integrated together into locals’ religious practice in an inclusive way which is thought not contradictory by the locals, I summarize three aspects of this way—representation apposition, concept appropriation, and practice appropriation, to analyse the transcultural structure and mechanism behind these phenomena. Then, I compare this social-cultural pattern with the contemporary Western social configuration of multiculturalism, arguing that the ‘mosaic’ structure of modern multiculturality still presupposes that different cultures are exclusive and independent spheres or islands, embracing the clear boundaries between different cultures. In contrast, the ‘watercolour’ structure of transculturality reflected by the transcultural religious phenomena in Qiaohou Town could inspire us to competently deal with the growing diversity in modern society and provide other regions in the world with enlightenment and reference significance.