The local communities of Indawgyi have traditionally extracted forest resources such as timber, firewood, fruits, and medicinal plants which were abundant until 1970. However, a continuous population growth ever since, and the increase of commercial exploitation of forest resources, in particular for timber and fire wood, have resulted in deforestation and degradation of Indawgyi’s watershed forests and a significant decline of wildlife. The establishment of a community forestry programme supports the sustainable production of firewood and timber while tackling deforestation and forest degradation. Fauna & Flora International facilitated the establishment of community forestry user groups, and further provided trainings and financial support. The community groups undertake forest inventories, community forestry management planning, nursery development, reforestation, assisted natural regeneration, and forest protection. These scheduled procedures secure the legal tenure for the community forestry areas. The community forestry programme relies on fast growing firewood species as well as slower growing fruit trees and timber species. The introduction of firewood saving stoves in villages throughout Indawgyi Lake basin increases the energy efficiency, and reduces the overall demand for firewood.