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The 2010 eruption of Mt. Merapi volcano in Indonesia was a major regional disaster. A community-based ecotourism was implemented in one village as a new alternative to recover from the event. The Participatory Innovative Learning and Action Research method was employed, with Pancoh Ecotourism Village as its focus. The researchers and villagers collected data using a variety of methods. After four years, growth emerged, and revenues increased. This success was partly due to the widespread training offered by universities, the use of the venue as an education site for sustainability, plus strong presentation of the nature and culture of the village lifestyle, which is attractive for urban citizens.