Hunan Province has shut down 146 small papermaking factories that failed to meet standards on pollutant emissions.

The factories all circle Dongting Lake. The region around Dongting Lake is rich in forests, which provide abundant productive materials for local papermakers. However, with a huge profit, these factories also brought unexpected side effects on the environment. According to Hunan Environmental Protection Bureau, the factories have emitted over 1.7 billion tons of wastewater into the lake.

In a circular released at the end of 2006, the provincial government regulated all papermakers and said they must install soda recovery units and ensure wastewater within allowed standards before a March 31 deadline. These 146 failed to meet the stated standard and have therefore been shut down.