This study employs insights largely derived from critical reflections on the common pool resources (CPR) theory to examine the current governance arrangements in place to manage the mangrove forest at Kisakasaka, in Zanzibar, Tanzania. Kisakasaka was used as a site for a community-based management pilot project of forest resources in Zanzibar. After some initial success in setting up a local management structure and regulating access to the mangrove for mainly charcoal production, there are now clear indications that forest conditions have deteriorated dramatically with concomitant ongoing resource use problems for local villagers who have relied heavily on forest resources as a source of cash income. Extra-local factors, such as urban population increases and associated market pressures for charcoal, are also conjectured to overlay and interact with the institutional problems at Kisakasaka. As a result, over concern about the deterioration in the condition of the mangrove forest, the responsible government authority decided not to renew the community-based governance arrangements after an initial five-year pilot period. While revealing the inadequacies of existing governance arrangements and of its relationship to deteriorating forest conditions at Kisakasaka, this study concludes by suggesting an approach to more fully understand forces driving local resource management and use.