Previous studies on the development of Feei-Tsuey reservoir area were mainly conducted from the planning and water quality protecting point of view. However, since 1978, it has gradually become a public issue due to the conflicting objectives: water preservation and land development. Basicly, the above problem can be decomposed into a sequence of subproblems according to its multi-stage property. For the multi-stage type of public problem, this paper describes a decision making process which includes two important concepts: round structure and public participation. With the aid of decision tools, the values and interests of different groups of participants are interchanged, and an improved public policy will be obtained. The proposed process is then applied to the case of Feei-Tsuey reservoir development problem to illustrate the procedure in detail.