Upper Swat is known for its scenic beauty, pine forests, wildlife, rivers, lakes and trout fishing. However the rapid growth of tourism has damaged the local environment. Unplanned resort development has lead to serious overcrowding and pollution at the confluence of Ushu and Utror rivers at Kalam, for example. Environmental problems associated with tourism have also emerged at some of the more accessible upstream lakes. These include fishing with small mesh nets, littering, open dumping of human excreta, and cutting down trees for fuel wood.

Participatory Rural Appraisal (PRA) was undertaken with the local men and women, and priorities established. Communities were encouraged to manage tourism around their common lakefront properties, to protect the fisheries from poachers, and to manage the demand for fuel wood. Project funds were used in a participatory manner to make culverts, restore a hydro power station, complete a water supply scheme and to construct public toilets. The project also established links between the communities and a micro-finance agency for self-help development. The project trained 34 unemployed youth in the practical skills needed by an eco-guide. It provided certificates of the training, and helped them secure start-up loans for tents, bedding and stoves. Most were able to re-pay the loan with earnings from the first season.

As a part of the project, an international expert trained five young professionals in the methods of environmental valuation. PIEDAR conducted surveys with these trained staff to assess the carrying capacity for tourism and the willingness of tourists to pay for environmental values. The willingness of many tourists to pay for a pristine environment, for fishing with rod & line, and for guided wilderness tours were shared with local tribal groups.

The project was put into abeyance after the law and order situation in the district became adverse. Now that normalcy has returned to Swat, a comprehensive conservation project is required to maintain the natural assets of the area.