Nanyang，City of Henan Province，is located in the junction area of Henan，Hubei and Shaanxi is the core water source area and head of the South-North Water Diversion Project. Due to the extremely high environmental protection requirements，it is difficult for Nanyang City to develop industrial production. Therefore，Nanyang chose a development path with Chinese herbal medicine planting as an important industry：anchoring the Chinese herbal medicine industry，and supporting the environmental protection of water source areas with science and technology. Nanyang develop Chinese herbal medicine according to local conditions and take a multi-pronged approach to protect the healthy development of the ecological environment. However，at present，Nanyang still has problems such as the low level of overall industrialization of the Chinese herbal medicine industry chain，the lack of demonstration and driving ability of leading enterprises，the lack of brand building efforts，and the low popularity of authentic medicinal materials. Therefore，it is necessary to speed up the establishment of the Traditional Chinese Medicine Development Bureau，which is specially responsible for the development of the traditional Chinese medicine industry；establish standards to provide protection for the development of pharmaceutical companies；enhance the awareness of property rights protection，and start the “war” to protect its own trademarks and brands；use technology to support the high-quality development of Chinese herbal medicine. In this way，Nanyang has envbarked on a path of integrated development of ecology and economy，turning waters and mountains into invaluable assets.