Book excerpt: This publication continues the Asian Development Bank's analysis of lake and wetland rehabilitation in the People's Republic of China. It examines how the current situation in the Chao Lake Basin compares with international thinking on the conditions necessary for sustainable management of lake basins. The analysis highlights that the creation of the Chao Lake Management Authority (CLMA) and the formulation of the master plan do not mean the problem has been solved, only that the basic framework for solving the problem has been created. Building CLMA capacity, focusing more on managing agricultural pollution, introducing incentives to change farmer behavior, and updating the master plan to ensure its relevance are four key actions for the government to undertake in the coming years, if not decades.