This clearly presented medium length report consists of the performance audit of a World Bank community forestry project in the state of Gujarat. The report discusses the problematic complexities of institutional arrangements over village lands and contains some useful lessons on equity issues. It also highlights the limited capability of the panchayat to implement the project and the need to establish capability at an early stage in a project. The target driven philosophy which disregards quality related aspects is identified as a problem. The report concludes that the project has done little to decrease pressure on existing forest. Discussion focuses around the multiplicity, and thus complexity, of objectives which acts to reduce the likelihood of success; the institutional and organisational problems faced; the importance of technology transfer; and the economic dimensions of the social forestry programme. Institutional aspects such as property rights, incentives, organisational set-up, government commitment and people’s participation are identified as the principal determinants of success.