This paper investigates the socio-ecological differences and interactions between upland and lowland areas in Shaxi Valley, Yunnan Province, Southwest China. As an analytical tool we used an extended Human-Environment System Framework by focusing particularly on the dynamics and sustainability of livelihood strategies and mountain-valley interactions. Drawing from household surveys conducted in two mountain and two valley communities in 2005 and 2009, we show that the distinct income gap between mountain and valley households in 2005 ceased to exist in 2009. The main drivers for this development are the local tourist industry, persistent demand for forest resources, as well as local off-farm and seasonal migrant employment.
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