The King Mahendra Trust for Nature Conservation launched the Annapurna Conservation Area Project (ACAP), the first and largest conservation area in Nepal, covering 7,629 sq. km in 1986 as an innovative concept in the protected area management system of the country. The conservation area embraces a multiple land use principles of resource management that combines environmental protection with sustainable community development. Traditional subsistence activities are woven into a framework of sound resource management, supplemented by conservation, development and alternative energy programmes to minimize the negative impacts of tourism and enhance the living standards of the local people.

The biological diversity of the Annapurna Region is equally rivaled by its rich cultural diversity. Since the first trekker came to the Annapurna area in 1957, the natural and cultural features of ACAP have made it the most popular tourist destination in Nepal, drawing more than 60 per cent of the country's total trekkers. ACAP follows the three grassroot philosophy of maximum peoples participation, sustainability, and its role as at ca atalyst (facilitator) whereby the local people are involved in all aspects of the conservation and development processes, both as principal actors and prime beneficiaries.

ACAP is spread out in 5 districts of the Western Development Region of Nepal and covers 55 Village Development Committees. ACAP is divided into seven unit conservation offices located in the field - Jomsom, Manang, Lho Manthang in the Northern Program section and Bhujung, Lwang, Sikles and Ghandruk in the Southern Program section. While the focus of Jomsom, Manang and Ghandruk, which are also popular areas for trekking, is on integrated tourism management and agro-pastoralism, the programme priorities for Bhujung, Sikles and Lwang are poverty alleviation and integrated agriculture and livestock development, agroforestry, and community development respectively. While the focus in Lho Manthang, Upper Mustang, which came under the jurisdiction of ACAP in 1992, has been on managing controlled tourism on a sustainable basis, and promoting heritage conservation which is the major tourist attraction along with alternative energy, resource conservation and community development programmes. The Conservation Education and Extension Project (CEEP) is being implemented in the entire ACA and forms the backbone of all its conservation efforts in the region.

ACAP has completed and is implementing the recommendations of its Management Plan. that emphasizes building the capacity local institutions to carry out and continue ACAP’s present activities. The ultimate goal of KMTNC is to see that Annapurna Conservation Area (ACA) is managed by the local people themselves with minimal intervention from the Government and/or other institutions. The legal framework for ACA is provided by the Conservation Area Management Regulations (CAMR), 2053 B.S., which is approved by His Majesty's Government of Nepal. The Conservation Area Management Committee (CAMC), which is formed under the CAMR in each village development committee, is entrusted with the responsibility to manage, utilize, and protect all the natural resources within its own respective VDC.