Over the past decade, the Government of Nepal has passed progressive legislation regarding decentralisation and the devolution of powers to local communities including the Forest Act of 1993 and the Local Self Governance Act of 1998 (LSGA). The inclusion of local level authority over forests in different ways in these two Acts opens up an area of contradiction and is a potential source of conflict. There are similar contradictions in the provisions of other acts. This publication analyses the provisions of these Acts regarding the management and development of forest resources and pertaining to other natural resources. The difficulties inherent in each Act and overlapping provisions between them are examined. The reader will find a clear academically precise summary of the situation, together with suggestions on the changes needed to ensure clarity in the provisions. The authors emphasise the need for consultation and serious dialogue between forest user groups and local, elected institutions to address the concerns of local government, at the same time as maintaining the autonomy, powers, and functions of the FUGs. It is a thought provoking document, and we hope it will stimulate discussion and action that will help facilitate the smooth working of the community forestry programme in Nepal.