This field report from the People's Republic of China describes the rapid changes in the large-scale settlement of pastoralists brought on by government policies. It discusses China's Grassland Law and the more recent 'converting pastures to grasslands' (in Mandarin, tuimu huancao) initiative. The complications and paradoxes of present land use policies are discussed drawing on empirical evidence gathered during fieldwork. This report describes efforts by two NGOs working in Tibetan pastoral communities to build social capital and cooperative entities for the purpose of improving economic welfare, particularly in response to the challenges faced as a result of government policies.