The emergence of commercial aquaculture in estuaries along the coast o
f Karnataka, India, has resulted in the breakdown of traditional metho
ds of resource management and adverse impacts on the coastal environme
nt. Based on field survey, personal discussions and published literatu
re, we analyzed the evolution of different market (economic), traditio
nal, and regulatory institutions governing the use of estuarine resour
ces in the study area over the last three decades, and identified the
environmental and social impacts of this evolution. In the past, infor
mal associations of farmers in the estuarine floodplains had managed l
ands for raising crops and brackish-water fish in a sustainable way. I
n recent years, under economic and political pressures, landowners lea
sed their lands to commercial shrimp-producers. A rapid growth in the
production of commercial shrimp, employment of unsustainable productio
n technologies, and laxity in environmental regulation have caused neg
ative ecological and economic impacts on communities dependent on estu
arine resources. Through a recent order from the Indian Supreme Court,
environmentalists and the affected communities have sought to ban com
mercial aquaculture in ecologically-sensitive areas. While this court
order awaits implementation, several policy options are here suggested
fbr local, state and central governments in India in order to protect
the estuarine environment.