This is an overview paper based on the contemporary literature available in the regime of forest and pasture as common property resources. The analysis has underscored the role of local institutions and organisations for the sustainable management of forest and pasture as common property resources. The paper concludes that farmers of Nepal have developed and used the organisational and institutional mechanisms for the sustained management of these resources by ensuring social equity. Understanding the ingredients of indigenous resource management systems can have a bearing on developing appropriate national policies aiming at ensuring the sustainability of the future programmes of Nepal.