As the conservation of natural resources requires intensive labor force and even involves rather diverse interests, it highly emphasizes the participation of the social sectors, including resource users and voluntary organizations. The operation of the social sectors relies on strong networks, effective norms, and interpersonal trust-worthy relationships to sustain the collective actions of self-management. Under what conditions can such a strong state-clamped society of Chinese Mainland develop a participatory mode of natural resource conservation? This study takes the watershed management in Lashihai, Yunnan province as an example to discuss how the villagers had, with the assistance of international nonprofit organizations and the endorsement of governments, achieved a successful participatory watershed management. It also reveals the possibilities of the civil society's reconstruction and participation in governance under the post-socialist authoritarian rule.