Abstract: ung Lok Wai is the precedent of public and private partnership scheme in wetland conservation in Hong Kong, whose developer tried its best in the past 20 years. Apart from some ecological problems like fishpond, noise, birds, and firefly, privatization of wetland and public participation have also become tough problems challenging the developer and the government. The Government of Hong Kong Special Administrative Region launched New Nature Conservation Policyin 2004 to encourage cooperation between public and private sectors. The policy listed 12 prior sites to develop and Fung Lok Wai ranked the 9th among them. When others were questioning the effectiveness of public and private partnership in wetland conservation, Fung Lok Wai has gained great attention from both its fans and objectors. The success of Fung Lok Wai has great influence not only on political strategies in Hong Kong but also on wetland management in mainland China. With the drop-out of WWF in May of 2013, the story of Fung Lok Wai has reached the climax. This paper analyzes the design and commercial factors in this project, and puts forward the primary cause which has been delaying this scheme. Land privatization and public participation should be fully considered in wetland conservation, especially under the context of public and private partnership. This paper aims to provide a clear institutional reference for developers and government in Hong Kong as well as mainland China.