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With its rapid development, the rural area of Southwest China has been puzzled by the waste management problem, especially for increasing solid waste and water pollution from the domestic waste. Therefore, in order to efficiently and effectively manage the domestic waste in the rural area of Southwest China, 22 villages were selected randomly to analyse the characteristics of domestic waste, the influence factors of characteristics and resident’s willingness of participation in domestic waste management by questionnaires, field samplings and laboratory tests. The results of the rural area of Southwest China indicated that the generation of domestic waste was 178 g d−1 per capita and it was mainly composed of kitchen waste, inert waste, plastics and paper with a total proportion of 81.98%. The waste bulk density, moisture, ash, combustible and lower calorific value were 107 kg m−3, 37.04%, 25.73%, 37.23% and 8008 kJ kg−1, respectively. These characteristics were influenced by the topography, the distance from towns or cities, the villagers’ ethnicities and income sources to some extent. Moreover, the distance of 50–800 m between each collection facility and the disposal fee of around ¥5.00 per household per month could be accepted. The working hours of participation in waste management is suggested as 5 hours per day with the income of ¥1000 per capita per month. Based on the outcome of this survey, a waste management system consisting of classified collection, centralised treatment and decentralised treatment was proposed. It is important to ensure financial viability and practical considerations of this system. [ABSTRACT FROM PUBLISHER]