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This volume of The China Environment Yearbook is the second in a series of annual records written, commissioned, produced, and edited by Friends of Nature, China's premier environmental non-governmental organization. This book provides a window on debates and events as they have affected China's struggles toward a more just and sustainable model of development during the year 2006. Courageous essays question policies of fencing Inner Mongolian grasslands in a way that contradicts local culture and ecology; probe the wisdom of the South-to-North water transfer scheme in the upper Yangzi (and of a potentially even more ecologically intrusive mega-project called the Shuotian Grand Canal Project); and analyze shortcomings in government efforts to clean up some of China's most heavily polluted waterways. There are candid accounts of new levels of environmental degradation in rural areas and of the difficulties encountered in China's effort to produce a "green GDP" that would accurately reflect the costs of natural resource extraction and pollution. Other hard-hitting articles describe China's role in the global trade in illegal logging, analyze the problem of "cancer villages," and make clear the seriousness of problems with widespread groundwater contamination and lack of access to safe drinking water.