Authorities punish veiled women's relatives by not authorizing marriage certificate or pilgrimage applications.
But the hydropower projects will benefit the larger region, project sponsors say.
The violence in Kargilik, Xinjiang leaves three Uyghurs and two Han Chinese dead, according to a local resident.
The alleged killer, who also died, was a suspected fugitive from clashes in Maralbeshi, according to local religious leaders.
Reports say the school has now reversed a ban on traditional head coverings for its Uyghur girls.
Last month's violence prompts a security sweep of higher education institutions, an exile group says.
The protest came amid a crackdown on street vendors who ply their trade near a major mosque.
Chinese authorities are accused of providing incomplete information.
The registers include categories for 'women who wear veils' and 'persons who study the Quran.'