“Area management” activity which is led by local residents and enterprises and has been attracting increasing attention in the field of urban development and management in recent years in Japan, involvesthe problem of free-riders who can benefit from the activities without any involvement and burden. This study focuses on social capital, which is pointed out to contribute to solving this problem, and attempts to clarify whether local residents' social capital influences their willingness to voluntary financial burden of “area management” activity. The results of the analysis, based on data obtained from a questionnaire survey of residents in two areas of Shizuoka City, Shizuoka Prefecture (the JR Kusanagi Station area and the JR East Shizuoka Station area), indicate that residents’ tendency to general trust and consciousness to reciprocity, which are representative indicators of social capital, may have a positive impact on the willingness to pay (WTP) to the activities. The results also indicate that recognition and understanding of the activity and a high level of concern for future generations also may have an impact on WTP. These findingssuggest that reaching out to the awareness of local residents may lead to their willingn ess to support and cooperate in “area management” activities.

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