Displaced people of mega-development projects may find it difficult to adapt and re-establish themselves in the host community and, as a consequence, feel marginalized and discriminated against from political, economic, and cultural perspectives. Taking the Three Gorges Project in China as a case study, this research explores the implications of integration in mitigating the perceived discrimination of such displaced people. A stepwise additive regression model was applied to the data for self-reported perceived discrimination in daily routines by the respondents to a specially prepared questionnaire. The findings were twofold: (1) individually, good health and a satisfactory level of income, as well as a positive attitude and self-awareness toward displacement and resettlement, helped relieve feelings of perceived discrimination; and (2) to better integrate into the host community, displaced people can ease their feelings of discrimination by establishing a balance between different cultures and their social networks, especially as regards kinship ties. The results of our study show that the mitigating effects imposed by human settlements, such as satisfactory housing and well-facilitated commercial conditions, can help to compensate for feelings of inferiority and sociocultural barriers. This research provides a theoretical framework for relieving the perceived discrimination of the displaced through integration.