This paper looks at two interfacing trends shaping devolution of forest management in India: appropriation of space for forest management by diverse self-initiated community formations; and state-driven devolution where government policies define the scope of local authority in forest management. Current devolution policies are located in the historical trajectory of conflict between local interests in forest livelihoods and community-based decision making on the one side, and state interests in forest revenue, environmental protection and centralised control on the other.