The lake wetland on Yunnan plateau is of unique ecological value. However, it is presently faced with contradiction between the environmental protection and sustainable development. How to establish the coordinated mechanism is the main focus. This paper, taking Eryuan West Lake National Wetland Park as an example, illustrates the relationship between the living environment and wetland, explores the strategy for the human settlements development, puts the technology of water management and ecological restoration into practice, and proposes the preservation and development countermeasures of lake wetland on plateau in order to promote the sustainable development of human settlements.