This paper analyses the role of management institutions on common property resources as development drivers and safety net providers. Particularly, the role of Supra-National, National and Sub-National institutions in fisheries management around Chilika Lake (largest brackish water lagoon in Asia- A Ramsar Site) in Orissa, India will be studied closely. With the intervention of the management institutions there is a visible change in production of fish and shrimp, conservation of ecosystem, livelihood protection of the depending fish folk population, conflict resolution etc. This sort of co-management between the Government and other supportive agencies has not only created a space for development but also has given a platform for the affected population. However, the insights gained into the ongoing struggles, conflicts, negotiation, mediation and adaptations of stakeholders, major learning points are identified to be replicated to the extent to which institutions can be better designed for governing the local commons.