Project entering the village is an important way to promote rural environmental governance, and the response capacity of community is related to the effectiveness of governance. Taking the “Village Bank” project in Northwest Yunnan as a case, this paper explores the environmental governance mechanism of the project in countryside from the perspective of village-community response to the project. The findings are as follows: accurately docking of livelihood needs and “development” to boost the “environmental protection” is the basis of the implementation of the project. Mobilizing the public with the help of local elite organizations and activating the endogenous motivation of the community is the key to the effective development of environmental governance. The ecological regulation based on local traditional culture is the institutionalized guarantee to realize the coordinated development of community economy and environmental protection. In order to improve the efficiency of environmental governance, it is necessary to fully integrate external governance projects with the logic of local life, so as to strengthen the dominant position of villagers and activate the enthusiasm of local people to participate in community environmental governance.