The term tourism is used to characterize socio-cultural phenomena that include transportation, motivation, accommodation, hospitality, impact, and the economic, cultural, social, and environmental sectors that are influenced and driven by human movement. Based on this understanding, the development of a tourism area must absolutely involve the people who live in there. The participation of local people becomes a key factor in developing a tourism destination. One area that has considerable tourism potential is Karangwuni village, which is located in Wates District, Kulonprogo Regency, Yogyakarta Special Region. The area of this sub-district is 722.35 hectares and very suitable to be developed into a tourism area because of the uniqueness and there are many interesting spots that can be developed including human resources. With the new Yogyakarta International Airport in Kulonprogo, the development of the tourism area in this village is very important. This article discusses the experience of an action research method that carries out the process of designing a community-based tourism area with the objective of exploring the tourism potential that exists in the Village and afterward to be developed into sustainable tourism destinations.