According to a circular, anyone caught walking their dog three times would have them rest, the outlet reported.
Owners caught walking their dog in public will receive a warning for the first offense.
If they are recaptured, they face fines of 50-200 yuan (about 7-30 dollars), a third violation will result in the confiscation and death of their pets.
But in the face of widespread condemnation on social media, officials say they will “rethink” the draconian measure.
“These are uncivilized policies to promote the breeding of ‘civilized’ dogs,” one person said of the policy.
Dr Jaipal Singh Gill, who heads the Society for the Prevention of Cruelty to Animals in Singapore, told the BBC that confining dogs indoors can be “detrimental to the welfare of the animal”.
“Instead of banning dog walking, educating pet owners about responsible animal ownership and putting regulations in place can be considered instead,” like keeping a dog on a leash, he said. .
In 2018, Hangzhou City banned daytime dog walking and banned large breeds.
But the Yunnan province measure would be the first time that a ban on walking a dog at any time of the day has gone into effect.