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The increasing interest in environmental conservation is a global phenomenon. In many countries, natural reserves or protected areas (PAs) have been established to restrict human activities and to enhance natural ecosystems, which potentially benefit the planet as a whole. However, this often demands some sacrifices from local residents who may have to give up resources they rely on or suffer losses caused by wildlife. This issue potentially becomes aggravated in densely populated areas where many people and economic activities are impacted. This paper presents research findings on poverty issues in a newly established national natural reserve in China, Hengshui Lake Natural Reserve. The paper addresses the characteristics of poor households in the reserve and the interaction between these families and the reserve. In addition, poverty alleviation measures are analysed and additional measures to reduce poverty and conflicts between the reserve and local residents are recommended. [ABSTRACT FROM AUTHOR]