Abstract
This paper concerns resource governance in a remote Balinese coastal community, which faces severe environmental challenges due to overexploitation and habitat destruction. It explores some of the issues raised in 'social capital' debates regarding leadership and public participation toward sustainable natural resource governance. Given the strength of Balinese customary law and the high degree of participation required in the ritual-social domain, Bali represents a model context for examining these issues. Through a case study of destructive resource exploitation and evolving rules-in-use, this paper analyses the ambiguous role of 'bonding' social capital and the complexities of negotiating collective action on environmental problems where conflicting interests and dense social ties make local action difficult. The paper finds that a more complex appreciation of vertical (authority) and horizontal (solidarity) relationships between leaders and ordinary villagers is required, and that a more nuanced institutional bricolage and exploratory scenario approach to analysis of evolving rules in use would enhance associated policy interventions.