Numerous countries have undergone decentralisation reforms in the management of natural resources. However, the policies implemented are often not applied in ways compatible with the democratic potential with which decentralisation is conceived. The paper analyses the issue of decentralisation in resource management, in Thanagazi block, Alwar District, Rajasthan. In this paper I present a case of community initiated decentralisation carried out through village organisations. The aim is to contrast it with the state initiated decentralisation system carried out through the local administrative unit, the Gram Panchayat. Some conclusive remarks will be made on the importance of promoting more inclusive and democratic institutions which take into account the local needs and priorities regarding the management of natural resources and development interventions.