The project site is located in Lashihai Provincial Nature Reserve, which is Ramsar site. This area is also well known as one of forty-nine important wetlands in China. Wenhai village also has an administrative committee of which includes indigenous people equally from both Naxi and Yi minorities. In general, planting (potato), aquaculture (pigs, chicken) and non-timber products (herbal medicine) are the main sources of economics income for local people. It is estimated that the annual income per capita for the Naxi people is 6,000-7,000 RMB and 4,000 RMB for the Yi people, also young people normally have seasonal work.

Main problems
1) Domestic sewage and garbage cause pollution and degradation of wetland ecosystems
2) Over-consumption of fuel-wood threatens the biodiversity in surrounding areas
3) The unorganized tourism carried out by locals has caused adverse impact on the natural landscape and culture.
4) Locals in general have weak environmental protection awareness and poor skills in ecotourism management.

Solutions/Activities:
1) Introduce and demonstrate advanced technology on sewage and garbage management.
2) Plant fuel-wood forest and hold workshops on environmental protection and wildlife protection.
3) Develop community participatory ecotourism plan.
4) Provide training on Eco-tourism and environmental education.
5) Design and distribute project brochures and organize workshop to promote project results.

Anticipated results
1) domestic sewage treatment technology and ecological toilet demonstrated, waste management regulation formulated and 160 hectares of wetland protected.
2) 7ha. of fuel-wood forest planted, 300 people's awareness of wildlife protection enhanced; village regulation on fuel-wood management and wildlife protection implemented; illegal poaching rate reduced 50%
3) household annual income increased 1500 RMB through ecotourism
4) 600 people and 500 school students' environmental protection awareness enhanced
5) 500 copies of project brochures distributed.