I didn't have the chance to do this project this past year, but I did it the year before. It was a huge success, but it took a lot of time.
I started by teaching the kids about Chinese Scroll Paintings, and the history of them. I created a worksheet where they answered questions and had to sketch ideas for their designs.
The students worked on 12x24 white paper, to get the "scroll-like" feel. They lightly sketched their design using a pencil, and then were taught all about watercolor techniques. They were encouraged to do a lot of washes at first, and then go back when it was dry to add more dry brush details. They had to add chinese symbols using black ink as a finishing touch.
I finished them off by mounting a piece of thin, black paper at the top and bottom of the 'scrolls', and then hanging with yarn. The "oooo's and ahh's" of the hallway were endless.