This assay studied the relationship between vegetation index and soil physical and chemical characteristics of different inundation zones of the aquatic-terrestrial ecotones of Daxu Town. It also addressed the ecological problems related to water shortage and vegetation degeneration occurring in the Li River in recent years. The results showed that in the study area, species composition of the aquatic-terrestrial ecotone was dominated by annual herbaceous plants and species diversity in different inundation zones initially increased and then reduced. The change in species diversity was in the following order of inundation degree: light inundation zone> severe inundation zone> middle inundation zone> micro inundation zone. Weakening of the hydrological influence resulted in gradual reduction of sand content, gradual increase of silt and clay content, whereas soil bulk density, soil organic matter, and total soil phosphorus initially reduced and then increased. The total nitrogen content decreased after the initial increase, total potassium was not significantly different in all zones, whereas soil properties and vegetation diversity of Daxu Town ecotone were strongly influenced and controlled by the water level. The study also indicated that Polygonum aviculare can be used as an indicator species for flooding. In addition, the Daxu Town ecotone is also affected by tourism. Therefore, vegetation restoration work should consider the ecological aspects of the ecotone and tourism in order to enhance the Daxu Town landscape and possibilities for recreation.