Results of an analysis of economic returns and financial incentives in rangeland use in northern Botswana are presented. Land use systems involving small-scale livestock keeping, medium-scale cattle post livestock production, Commercial livestock production, commercial wildlife viewing tourism, and community wildlife use were examined with detailed budget/cost-benefit models, developed from empirical data. Development of both wildlife and livestock land uses will maximise returns of economic direct use value, and meet development objectives. Wildlife-based tourism in high quality wildlife areas is extremely economically efficient, and should have priority. Community use of wildlife can also be economically efficient and should be promoted where its values exceed those of livestock. Small-scale production of livestock provides significant household income, primarily through subsidies. It has potential to generate high economic values, but is economically inefficient due to its open access nature, and itsconsequent low herd productivity. Capitalintensive commercial livestock ranching is economically inefficient and should not be promoted. Attempts to promote expansion of beef production should focus on low input systems. Wildlife activities appear have positive impact on biodiversity. Livestock activities do not, but only open access livestock systems have negative impact. Improved common property management of rangeland among traditional livestock keepers will enhance both economic returns, and biodiversity conservation.