The tradition of conserving forests through informal village level institutions already exists in many forests fringe villages of the state. In the recent past many significant efforts have been made by the State Forest Department, more particularly, through the Odisha Forestry Sector Development Project (OFSDP) Phase- I, for strengthening and supporting such community based initiatives. The experience gained under OFSDP Phase- I reveals that with the support provided by the Government, in terms of finances and capacity up-gradation, the outcome has further improved both in terms of conservation and management of the natural resources. At the same time the forest fringe communities' are also immensely benefitted through income generation activities.