The project is focusing Russian-Estonian border region, Lake Peipsi/Chudskoe area.Major weaknesses of the region are identified as monofunctional development, environmental challenges and weak infrastructure. There is a great need in the cooperation involving the regional and local governments, NGOs and other stakeholders, both from Estonian and Russian side to eliminate development hindrances caused by geographical location and to ensure sustainable development for the whole Lake region. Overall sustainable development objectives for the region have been established in the Lake Peipsi/Chudskoe Transboundary Management Programme/MP (UNDP/GEF funded project, managed by Peipsi CTC) that was elaborated in 2003 †2005. The Programme involves joint measures for sustainable use of resources in the transboundary waterbody for the period of 2006-2015.Now the next critical step is to widely inform the local population about the objectives of the MP and start implementation of its measures. The MP has set down programme of measures for objectives such as 1. Maintenance and improvement of the quality of the transboundary waterbodies to bring them towards natural status; 2. Sustainable use of transboundary waters; 3. Sustainable use of fish resources; 4. Lake Peipsi/Chudskoe wildlife protection; 5. Joint management of transboundary waters in river basin principle. Thus, the current project is aiming the partial implementation of the MP, more specifically focusing on following parts: a)Municipal wastewater, b) Ecotourism c) Transboundary water management: coordination, info exchange, public participation. The project activities aim to develop solutions for avoiding this EU external border being an obstacle for regional development and to improve sustainable use of natural resources. This will be achieved through a)competence and capacity building of local and regional authorities in the Lake Peipsi cross-border area, b)through reconstruction of sewage treatment plant in Pskov city area, c)public participation and intensive information dissemination activities.The key criteria’s for the selection of the project partners has been their experience and role in water management in transboundary water regions as well as participation in the development activities. Interaction between Estonian and Russian specialists will help to elaborate effective common approaches needed for balanced regional development and provides a solid base for the continuation of the cooperation in future. As main results of the project: Lake Peipsi/Chudskoe Transboundary Water Management Programme is implemented partially; Public/local stakeholders are actively engaged into the Programme implementation, capacity of local and regional authorities in the Lake Peipsi Basin is increased for managing local development and environmental challenges etc.