The article describes the strategy of environmental development as a tourist village area conducted in Sendangsari. Research background of the emergence of UU Desa and UU Keistimewaan DIY. That underlies various rural areas in developing the environment. In Sendangsari, the environmental management strategy is carried out as a form of tourism development. The data obtained through research conducted by qualitative descriptive method and data collection technique through observation, interview and documentation. The informants involved in the research process are the Village Head, the village management board ie LPMD, PKK, Karang Taruna and the Tourism Actors, the Head of the Sadar Wisata Group. It also involves the Office of Culture and Tourism of Bantul Regency as a government stakeholder. The result of the research shows that the strategy implemented by Sendangsari Village in the effort of environmental management as the implementation of UU Desa and UU Keistimewaan DIY are 1) Environmental mapping in the form of village potency; 2) Social empowerment to optimize tourism potential; 3) Utilization of environment as Tourism Village development area; 4) The carrying capacity of the government in the management of the Tourism Village.Keywords: environment, Sendangsari, Tourism Village