Once heavily polluted, Dianchi Lake — the largest freshwater lake in Yunnan province — has seen a resurgence in tourism after local government's efforts to protect the environment and restore the ecosystem.

During the early years of industrialization and urbanization, the lake became one of the most polluted in China. In the 1990s, its water quality below Grade V, the lowest level in the national five-tier grading system for surface water.

Thanks to persistent, comprehensive, and systematic clean-up measures, as well as efforts to control pollution sources, the lake's water quality has been maintained at Grade IV for six consecutive years, the Dianchi Lake administration bureau said.

Statistics from the city's ecology and environment bureau show that vegetation in the wetlands around the lake has increased from 13.1 percent in 2007 to the current 81 percent. The number of plant species has increased from 232 to 303. And the number of bird species rose from 89 to 175.

Yang Peng, chief economist at Kunming Dianchi National Tourism Resort, said the development emphasis around Dianchi Lake used to be real estate and commercial industries, but now the focus has shifted to eco-friendly industries such as tourism, culture, sports, wellness and health.

Last year the resort received 23.68 million visits, generating tourism revenues of 26.2 billion yuan ($3.69 billion), an increase of 45.58 percent year-on-year, Yang said.

He said the resort is building a 137-kilometer greenway around the lake where visitors can walk or ride a bicycle to enjoy its beautiful scenery and experience the unique charm of dozens of lakeside villages.

"We are currently developing 46 villages around the lake based on their own unique historical and cultural characteristics to create a diverse, well-equipped and distinctive rural eco-tourism circle," he said.

Haiyan, a 600-year-old fishing village, has become an internet-famous destination for tourists to capture what is touted as the most beautiful sunset.

Li Tie, Party chief of the working committee of the Dayu subdistrict, said the village is already home to more than 100 businesses, including restaurants, homestays, coffee shops and art studios. These businesses have created more than 300 jobs that pay an average of more than 3,000 yuan per month.

Around 98 households in the village rent out their houses, increasing their annual income by an average of more than 100,000 yuan, he said.

Xiao Yuan, who once worked for a real estate company, quit her job and joined her mother in running their own store, which mainly sells a local pea-flour dessert dish that is served in a bowl.

"We sell about 100 bowls on weekdays. On weekends and holidays we can sell up to 300 bowls," Xiao said, adding that a bowl sells for 8 yuan.