Kampunganyar is one of the village in Banyuwangi regency that currenty develops and promotes its waterfall, so called Kampunganyar Waterfall, as a tourist atraction. The development cannot be separated from the effort of local communities to make the village get famous. In the process of the development, there were obstacles accured such as rejections the program and the conflict between local communities. In order to solve the problem, BUMDES (Badan Usaha Milik Desa), a kind of small corporation established by the village administration, is currenty manage the waterfall. This research aim to describe and explain the local community participation including factors affect community involvement , and to explain economic activitiy emerged. The research uses descriptive qualitatif method and data sources obtained from observation, interview, and documentation. The result of this research showed that the form public participation consisting of participation on deccision making, participation in the lmplementation, participatlion in the result of the development, and participation in evaluation. Factor that impedes the participation is derived from the social gap among society. Mean while, the push factors of participation comes from the eagerness to possess tourist attraction as what have already done by the neighboring villages. Activities arising is produce change jobs and income enchacement of the community.