In Japan, the direct payment scheme for mountainous areas was introduced in order to enhance multifunctionality of less-favored areas in 2000. A comprehensive ex post assessment showed that the scheme effectively contributed to prevention of abandoned cultivated lands, maintenance and enhancement of multifunctionality of agriculture, continuous assistance for agricultural production, and revitalization of community. In 2005 a second round of the scheme started and urged encouraging core farmers, improving productivity, and reinforcing inter-village coalition as to promote autonomous and sustainable rural economies. A new different scheme such as 'measures to conserve and improve land, water and environment' was launched for strengthening conservation and management of rural resources over all areas in 2007. It covers one third of paddy fields with regards to maintenance of water facilities and practice of group eco-farming beyond less-favored area. A lot of public programs have been developed for rural revitalization recently. Additionally some have a complementary role to enlarging cultural multifunctionality in rural societies. We could interpret the institutional progress as an evolutionary path of rural development and environmental schemes for the past decade. Much experience of community works through the direct payment scheme for mountainous areas may have resulted in accumulation of social competence for elaboration of rural management..