The Jiaquan Spring of Southern China is being commercially exploited for bottled water. Yet the watershed it depends on is facing multiple environmental stresses including soil erosion and loss of original forest cover and biodiversity, which are intricately linked to a broader set of problems in the social and economic fields. How can the delicate balance of business and nature conservation be reached? IUCN China is working with Danone Waters China (DWC) to support the design and development of a long-term road-map for watershed restoration plan in the Jiaquan spring watershed. We will share our experiences in turning an environmental dilemma into a collaborative, inclusive process of sustainable development.