The cultural heritage of the oldest town ofLatvia, Ludza, so far hasn’t been deeplyresearched, while Molėtai in Lithuaniaalready has a programme for preservation ofthe culture heritage. Both town municipalitieshave found out that they have a lot incommon and decided to join their efforts increation of a cultural heritage based tourism proposal, which could be used as a platformfor developing of local economy.The main objective of the project is toincrease the economic development inLudza and Molėtai by developing oneof their primary strengths i.e. their culturalheritage.The main results of the project are: commonstrategy for preserving and developing theheritage in Ludza and Molėtai based onthe research development; producing ofinformation stands and directions signs inboth towns; developing/renewing of webpages,producing a presentation book andCD.