Abstract: Natural resource management becomes challenging in countries with high population density, China included. The contradictory goals of natural resource management, as well as the conflicts between environment protection and local development, bring great challenges on planners and policymakers. This paper reviews the institutional arrangements of natural resource management in China, and especially investigates the management of natural reserves through the case of Zhalong Natural Reserve, Qiqihaer, Heilongjiang Province. By 2019, 157 households have been relocated from its core zone to a new community 20 kilometers away, posing intense burden on the living and working of residents. This research suggests there will be no one-size-fits-all solutions for natural resources management. The planning and governance of villages within natural reserves should be based on rigorous researches of local conditions, and should consider carefully the needs and property rights of residents, only in which way can a balance between environmental protection, economic growth and social development be achieved.