A community-based forest resource protection program was established in Cauayan and its adjacent area in southwestern Negros from 2001-2007. The program was preceded by research done by an academic institution, the results of which were used as a basis for establishing the Cauayan watershed reserve, a 6,000ha area that includes the forests of two barangays (villages), Pinamayan and Inayawan. This paper presents the processes employed in establishing community-based forest protection program and some strategies used to mitigate illegal activities, to improve biodiversity awareness among the stakeholders, and to promote community and local government participation.