Abstract Taiwan is surrounded by the ocean with enriched marine eco-diversity and coastal terrains, making it a land of abundant fishery resources. Yet, after Taiwan was returned to ROC in 1945, the abuse of inshore fishery due to economical development resulted in overfishing. Under the development of industrialization, marine pollution and the use of destructive fishing gear have also caused a great damage to the ecological and biological diversities along the inshore to the drastic decrease in fisheries. Thus, how the government may find a balance between sustainability in fishery resources and economical development in local fishing communities is the major interest of this study. The present research conducts the work through the collection of annual fishing statistics and the questionnaire survey of local fishermen and government administrators. This study analyzes the changing trends of inshore fishery in Taiwan and investigates the effectiveness of current fishery regulations and the policy of fishing transformation along the inshore in Taiwan. The fisheries administration is currently adapting several fishery regulatory measures which include fishery licenses, replacement of boats and fishing vessels, and suspension of fishing activities / fishing moratorium for the management of fishery resources. Yet the fishery resources are still shrinking each year. It is obvious that those measures are ineffective on slowing down the speedy drop of fishery resources. The survey results showed that the effective administrative efforts should involve the regulation policy on fishing gears, fishing methods, fishing zones, and fishing seasons. A top-down fishery management system should be integrated with the bottom-up fishermen¡¦s autonomy, in order to establish a feasible coordination system between fishermen and the administration. In the long term, in addition to the management of some target fishes, it is important to integrate the fishery policy and management with the sustainable management of the living environment and ecosystem. These should include the assigning fishery preservation areas and the protection of the marine habitats to ensure biological diversity and to maintain the sustainable fishery resources. To reduce the fishing impact on fishery resources involving buy out the additional fishing boats, the government should actively help fishermen on their career reform. The government should also encourage the conversion of overcapacity fishing boats to the entertainment fishery. Yet through questionnaires and interviews, this study has found that most fishermen are reluctant to change their career owing to the lack of specialties and the high cost of boat remodeling. This study suggests that marine tourist vessels and whale-watching boats should be categorized as entertainment boats under the jurisdiction of the Ministry of Communication. Yet, small fishing-entertainment boats are mainly for marine fishing, or watching traditional fishing / net caging operations, and tourist diving that all operate during the off-seasons. For this, the government should provide various fishing trainings, improve the harbor facilities for entertainment fishery, and cultivate all citizens¡¦ feelings of love for the ocean to promote the marine tour vacationing and the entertainment fishery. In the coastal 200 nautical miles exclusive fisheries zone, involving fishery habitat and reproduction ground, is the sovereign right control area of every coastal country. Thus, the government is entitled to decide the optimum fishery utilization independently as the basis of the fishery development for the food security, environment and resources conservation, and fishing community social stability. The present work concludes that government should plan and establish strategies for an effective management on the inshore fishery to ensure a sustainable fishery development.