Following the second world war, Japanese mountain villages have been experiencing depopulation and decline of basic industries such as agriculture and forestry. Consequently, local governments have been attempting to introduce enterprizes such as manufacturing plants in order to revitalize such areas. In addition, in recent years, regional revitalization projects (Machi-zukuri or Mura-okoshi) have been initiated by local residents.
In human geography, much research has been conducted on the theme of the regional revitalization of mountain villages. Few studies, however, are available which take the viewpoint of the theory of endogenous development. The main focus of such studies of endogenous development is the arena of local public finance. In the present study, the author examines Nichinan-cho, which is located in the Chugoku Mountainous District. To attain regional revitalization, the residents of Nichinan-cho established the Yukinko-mura project in 1994 in order to attract tourists. The author analyzes the case of the regional revitalization of Nichinan-cho, especially in terms of the process of the construction of Yukinko-mura, from the viewpoint of the theory of endogenous development. The author uses four check points proposed by Hobo (1996)-(1) long-term plan, (2) funds and capital, (3) existence of leadership and (4) resident consciousness towards the project, but places especial emphasis in his analysis on the latter two.
There are 25 leaders in charge of regional revitalization consisting of individuals such as a manager of a construction company, landowners, former local government staff, and so on. Although they have a respectively different commitment toward regional revitalization, they can be divided into two categories of main-leaders and sub-leaders. The main leaders have especially acted to generally enlighten regional residents and have motivated them to revitalize Nichinan-cho through personal and community relations.
Of the four check points, resident consciousness seems to be critical. (1) Whether residents are in favor of or against regional revitalization, they are likely to demonstrate their interest in or show indifference to the project. (2) Interest for Yukinko-mura is also related to the degree of consciousness for the issues of Nichinan-cho. Residents who embrace a deep attachment to their living place tend to be more concerned about the Yukinko-mura project. (3) Younger generation residents under 34 years of age do not show much concern for the project. (4) Housewives tend to share the same opinion as their husbands. This is probably because Japan's traditional family system is still operative in mountain villages.
In conclusion, the author presents a model of endogenous development processes in a depopulated mountain village (Nichinan-cho). This model depicts the current understanding that leaders play a central role in the general enlightenment of regional residents and in executing these kinds of projects in order to arrest the vicious circle of depopulation in mountain villages. The author also presents his view that the theory of endogenous development is not defined as a theory of policy but should be developed as the practice of residents' organization.

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