Indigenous systems of the management of natural resources are deeply embedded in cultural values espoused by local communities both as groups and as individuals. Under this project, we explored the role of customary arrangements and the enabling factors that allow the informal local and community-based institutions to effectively manage pastureland in Humla District, a part of the Kailash Sacred Landscape Conservation and Development Initiative (KSLCDI) in Nepal where the grasslands are important livelihood resources. This study focusses on how the locally designed institutional arrangements have managed the pastureland in Limi valley of Humla district. The study revealed that the community governance institutions are long enduring, have evolved through generations and are embedded in the social hierarchy. These community institutions have effectively managed the pastureland by aiming to ensure the sustainability of the resource base while enhancing equitable resource use.