Due to frequent natural disaster around the world, the post-disaster recovery plan has become one of the most important issues that many countries face. In 2009, the devastation of a typhoon at southern Taiwan had washed away one of the local fishing villages. How to face and manage the high-risk-prone disaster area and its approach to restoration should be re-evaluated. This paper uses Pingtung's 'Raise Water, Grow Electricity' plan as a case study to demonstrate the success of participant collaboration. With a donation of 100 million U.S dollars, 44 hectares of farm land, and integration of each other, sustainability of land use emerged. It does not only echo the government responsibility but also maintain the livelihood of the farmers. Although this plan aligns with concepts of sustainable development, it still faced challenges from formal rules, informal constraints and the enforcement characteristics of both. The 'Raise Water, Grow Electricity' plan shows a distinct pattern of institutional change. Through cooperation of informal constrains including local participation and translation of land and formal rules, local alliances can benefit and then call the new actors to join for more policy resources.