This regulation also clearly specifies the conditions for setting up nature reserves. For those mainly to protect biodiversity, they will be categorized into two levels: national and local, according to the importance of their biodiversity. The establishment of national nature reserves will be examined by SEPA and approved by the State Council. The local ones shall be examined by the local environment department and approved by the local government.

This regulation also specifies the management of nature reserves. SEPA will be responsible for formulating technical guidelines, and standards as well as for development planning for nature reserves at the national level. The environment department above the county level will be empowered to exercise supervision over the management of various nature reserves within their administration.

This regulation also provides that a specialized management body will be established for every nature reserve, many activities in nature reserves will be prohibited, such as deforestation, grazing, fishing, herb collecting, land clearing, grass burning, mining, sand or stone collection. Entrance into the core part of the reserves will be prohibited and no production facility can be established between the core and buffer parts of the reserves.