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To make a dynamic analysis of ecological capacity and a quantitative analysis of ecological compensation, to promote the sustainable development in a nature reserve, and to make Po-yang Lake Nature Reserve as an example, the authors obtained information on land-use change in the years 1985, 1995, 2005 in Po-yang Lake Nature Reserve based on RS and GIS. Ecological capacity was quantified and its development change, spatial characteristics, and the sustainable development status of the nature reserve with ecological deficits and surpluses were analysed. Results show that land use had been stable since the Po-yang Lake Nature Reserve came into existence. The change compared grassland (increased 15.22%), water body (increased 7.05%) and unused land (decreased 18.19%). The ecological capacity improved from 1985 to 2005 (the per capita ecological capacity from 0.8284 ha to 1.0534 ha). Among nine villages and towns in the reserve, the ecological surplus villages and towns were Wucheng, Tiehe and Changyi, the ecological balance villages and towns deficit were Sanjiao and Shahu. The remainder were in ecological deficit. In all of the nature reserve, the ecological capacity in the southeastern area was in surplus but that in the north-west was in deficit. The degree of ecological harmony was 1.414, which proves that the sustainable development state in Po-yang Lake Nature Reserve was under sustainable status. In 2005, the ecological footprint efficiency was 8382 yuan/ha, and the agricultural ecological footprint efficiency was 3204 yuan/ha. The lowest ecological compensation was 1725 yuan per family or 403 yuan per person, and the equal ecological compensation was 3798 yuan per family or 888 yuan per person. [ABSTRACT FROM AUTHOR]