Abstract: Areas along the mainstreams of the Yangtze River are the largest inland industrial districts and manufacturing industry bases in the world, which have played an important and strategic role in China＇s social and economic development. However, ecological problems resulted from the largescale development and heavy human activities along the basin have been aggravated in the past twenty years. Therefore, economic development and environment protection are the two strategic missions of areas along the Yangtze River. Based on investigation and from the perspective of sustainable development, the authors analyze the major problems existing in the social and economic development of Zhaotong City. From systematic perspective, the authors expound the mechanism between ecological system and economic development. It argues that heavy population density and unreasonable industrial structure make the fragile ecological environment bearing heavy pressures and constitute the major causes of environmental degradation in Zhaotong City. In order to satisfy sustainable development and assist to balance the conflicts between ecological system and socioeconomic development, strategies for ecological industry development in Zhaotong City are put forward, including intensive and highefficient agriculture, environmentfriendy and recycling industries and ecological tourism development.

Key words: ecological economy, ecological foundation, upper reaches of the Yangtze River, Zhaotong City