Contemporary theoretical accounts of common pool resource management assume that communities are able to develop institutions for sustainable resource management if they are given security of access and appropriate rights of management. In recent years comprehensive legal reforms of communal rural resource management in Namibia have sought to create an institutional framework linking the sustainable use of natural resources (game, water, forest) and rural development. The state, however, ceded rights to rural communities in an ambiguous and fragmented manner, creating a number of instances of overlapping property rights and different legal conditions for different natural resources. Nowadays communities grapple with the challenge of developing institutions for these resource-centered “new commons”. This paper describes the process of local institutional development, focusing on the challenges arising from the necessity to define group boundaries, the issues arising from monitoring and sanctioning within newly defined institutions, and the ideological underpinnings of different trajectories of communal resource management. Keywords: Common pool resource management, Conservation, Water-management, Namibia Pastoralists.