Colonic disease causes significant morbidity and an accurate model of the human colon is urgently needed. Here we describe a 15-day protocol which simultaneously generates intestinal epithelial and mesenchymal cell populations from human induced pluripotent stem cells. Cells were seeded on collagen to create colonic patches (CoPs) and cultured in vitro . Single-cell sequencing of CoPs identified similar cell populations to those seen in normal colon. Engraftment of CoPs into mouse subcutis showed development of mucosa containing epithelial crypts (with enterocytes, goblet cells and neuroendocrine cells), multiple stromal populations, smooth muscle and human blood vessels anastomosed to murine vasculature. We also demonstrate the versatility of our in-vitro model in studies of fibrosis and epithelial-mesenchymal interaction. Stimulation of CoPs with different cytokines resulted in cytokine-specific fibrogenic activity. When iPSC-derived mesenchyme was isolated and co-cultured with different epithelial cancer cell lines, there was cell line-specific alteration of mesenchymal gene expression. As well as utility in disease modelling, the transplantability of CoPs raises their possible use as therapeutic autologous grafts for damaged colon.