An inflatable tower system for establishing an elevated observation platform includes an elongated, inflatable cloth envelope. When inflated, the envelope extends from a first relatively large diameter end (i.e. base) to a second relatively small diameter end. A blower is provided to introduce air into the cloth envelope at the first envelope end. An observation device, such as a video camera, is mounted on the envelope at the second envelope end. A method for erecting the inflatable observation tower is also disclosed and includes folding the envelope to establish a crease between the envelope ends. The envelope portion below the crease is then inflated while restraining the second envelope end. Once the portion of the envelope between the crease and the first envelope end is substantially inflated and oriented vertically, the second envelope end is slowly released with continued inflation until the entire elongated envelope is inflated and oriented vertically.