Kanchenjunga Conservation Area Project (KCAP) in Nepal is among the first protected areas in the world to institute a completely decentralized system of conservation and development. Proponents of decentralized conservation claim that it increases management efficiency, enhances the responsiveness to local needs, and promotes greater equity among local residents. This study assessed local equity by evaluating the levels of dependencies on natural resources among households and the factors affecting that dependency. Data were collected via detailed surveys among 205 randomly selected households within the KCAP. Natural resource dependency was evaluated by comparing the ratio of total household income to income derived from access to natural resources. Economic, social, and access-related variables were employed to determine potential significant predictors of dependency. Overall, households were heavily dependent on natural resources for their income, especially households at higher elevations and those with more adult members. The households that received remittances were most able to supplement their income and, therefore, drastically reduced their reliance on the access to natural resources. Socio-economic variables, such as land holdings, education, caste, and ethnicity, failed to predict dependency. Household participation in KCAP-sponsored training programs also failed to affect household dependency; however, fewer than 20% of the households had any form of direct contact with KCAP personnel within the past year. The success of the KCAP as a decentralized conservation program is contingent on project capacity-building via social mobilization, training programs, and participatory inclusion in decision making to help alleviate the dependency on natural resources.