It is stressed that community forestry intervention in Nepal, though in itself is an institution building process (for devising a sustainable and equitable forest management system) has, so far, tended to overlook the number of institutions that might have prevailed in the locality. Based on four Community Forestry Users Groups (CFUGs) in Gorkha, Tanahun and Parbat, the paper argues that a number of institutions (mostly non-forestry ones) may be associated in the local level and that community forestry intervention may not ignore this reality. Such institutions are seen to have been crystallised form of local 'interest groups' and hence may be used to help figuring out the local interests thus complementing the community forestry extension processes that are being practiced.