This chapter investigates the interplay between ethno-religious diversity and urban governance in the context of Muslim communities in northwestern China. Specifically, this paper examines how the state excludes ethno-religious minorities through appropriating them as cultural symbols in culture-led urban development. Urban policies on managing ethnoreligious communities are often closely aligned with the state’s efforts in promoting multiculturalism, especially acknowledging ethnic minorities’ crucial roles in fostering ethnic integration through cultural heritage. Minority communities in the context of urban cultural heritage are often celebrated as evidence of cultural transmissions and exchanges in the past. These histories and their implications for the current and future ethnic and religious administrative policies are instrumental for the state. More importantly, heritage sites associated with ethnic and religious minorities are often tourist attractions as well. In this light, these sites are valuable to the local government for their contributions to the local tourism economy. Meanwhile, having members of these ethno-religious minority communities engage in heritage and tourism-based activities can also be seen as part of urban policies that aim at improving minority communities’ livelihood. Therefore, cultural heritage is central to urban policies that target ethnic and religious minorities, particularly in state efforts to promote inclusivity in urban policies that support minority cultures in ethnic and religious contexts.