Phewa Lake is one of the unique natural resources located in the Pokhara valley. This unique natural resource coupled with the virgin peak of Machhapuchhre (Fish Tail Mountain) and friendly and hospitable people of Pokhara have been attracting a large number of tourists from all over the world. The past studies indicate that over 20% of international tourists in Nepal visit Pokhara and Annapurna range.

The pressure on Phewa Lake has increased because of the establishment of restaurants and hotels on the lakeshore, boating and other tourism related activities. Furthermore, urbanization of Pokhara City has expanded considerably over the years. The expansion of tourism, industrial and municipal activities have increased waste generation. Consequently, the disposal of urban liquid wastes directly or indirectly through natural or manmade streams, disposal of solid wastes on the shore of lake, sub-surface flow of septic tanks and other undesirable urban human activities have been increasing the pollution load on Phewa Lake water body. Apart from urban activities, the agricultural activities in rural watershed of Phewa have also been contributing the pollution load. Furthermore, sediment transport through rural watershed has been adversely affecting the lake in terms of shrinking its size over the years. The decreasing size of the Lake and polluted water body will proportionally decrease its beauty, consumer value and potential for income generation activities.

Responding to the request from His Majesty's Government of Nepal (HMG/N), Japan International Cooperation Agency (JICA) conducted a study on the Environmental Conservation of Phewa Lake in Pokhara, Nepal in March 2002. The objective of the study was to formulate an integrated plan for the environmental conservation of Phewa Lake. The study identified eight areas of interventions such as: water quality control, sewerage system development, solid waste management, watershed management, ecosystem conservation, monitoring, tourism development, environmental education and capacity building, and organizational and institutional development for the environmental conservation of Phewa Lake.

For the conservation of the Lake, one of the major recommendations of the study was to develop environmental awareness and capacity at various levels from the communities and other stakeholders to the policy-level people. The management of the Lake environment without the involvement of local people in terms of securing their understanding, cooperation and participation may encounter conflicts and problems. The study recommended that emphasis should be given on the environmental education, helping the communities and stakeholders understand the situation, stimulate the participation and work out the measures for improving the existing situation.

In response to the outcome of the study, His Majesty's Government of Nepal made requests to the Government of Japan and JICA to provide support for the implementation of Environmental Awareness and Capability Building Project. Responding to the request JICA has decided to provide support for the Environment Awareness & Capacity Building Project (PLEACBP).