Continued from the last installment, the authors use case material, primarily from northern Canada and South Asia, to explore the pervasive role of conflict in generating, shaping, and influencing the performance of co-management regimes. The paper analyzes the divergent interests and motives of state agencies in planning and implementing co-management arrangements. It highlights the cultural, political, and legal obstacles encountered by indigenous people and other rural communities in trying to negotiate co-management arrangements. The authors also explore the conflicts that can arise in co-management regimes where local participation in decision-making is very limited. General lessons and recommendations are drawn from their analysis.