Cameroon has made bold forestry policy reforms over the last decade. Among the many aspects of these reforms, forest management decentralization is the most radical and promising. Cameroon’s forest decentralization policy is predicated on the expectation that the transfer of management responsibilities and benefits to local communities will lead to social justice, positive socioeconomic change, and environmental sustainability. This report presents the results of research on forest management decentralization and local governance conducted in southern Cameroon in 2003 and 2004. The forest sector provides insights into the decentralization process writ large, since, as a source of national wealth, “green gold,” and of local subsistence, it is of great interest to central and local actors—engaging both in the process of reform. The study also investigated the effects on local governance of oil compensation, or “black gold,” in forested rural areas affected by the Chad-Cameroon pipeline. The case studies explore two key questions. How is the decentralization of forest or financial management affecting local governance in forest-based communities? What are the outcomes in terms of local democracy, justice, social transformation, poverty reduction, and environmental sustainability?