The sectoral reform programme currently underway in Tanzania will see the implementation of far reaching initiatives that will pave the way for local communities to directly benefit from the presence of wildlife in their areas. This initiative has been made possible by the introduction of the Wildlife Policy of Tanzania and the Village Land Act of 1999 that envisages local communities taking greater responsibility for the management and utilisation of wildlife resources in village lands. Several studies have been completed that examine the implications of these initiatives focusing on important policy, legal and institutional issues that must first be resolved. This study examines the options and impediments that local communities will encounter when they attempt to enter into some form of contractual arrangements with the private sector in order to exploit the natural resources in their village areas. The report is divided into five sections that deal with the scope of work identified in the Terms of Reference. It also provides several examples of “joint venture” agreements that have been developed in the region