This paper outlined the environment impact assessment (EIA) in the Sihwa project, and raised some issues. After EIA process, some key changes were introduced in the area; for example, more than six hundred hectares are newly allotted for wetland to help conserve natural ecosystem. The most salient contribution of EIA is its clear indication that the sustainable agriculture should be the way of farming on the newly created agricultural lands. However, it is argued that a new comprehensive environmental impact assessment is necessary which incorporates all development plans and projects in the Sihwa area. The environment impact statement was prepared under the assumption that the project would be implemented, without seriously considering no-action alternative. The project should be validated socially and economically, by implementing social impact assessment.