Topics discussed are: the Rai of eastern Nepal; perceptions of the environment in Rai culture; environmental knowledge; specific aspects of their (agricultural and agroforestry) farming systems, including erosion control, soil fertility management, pest management, weed control, genetic resource management and microclimatic management; the cognitive structure of the environment; and the ecology of ritual. The people's perception of the environment was based on both their knowledge of the environment and their relationship with the supernatural. It is concluded that development strategies which incorporate cultural explanations of the human-environment relationship must be examined for their efficacy in empowering groups of people, like the Rai, who are economically and politically marginalized by society.