This study examined the impact of reformed fishing and reef management practices in a community-based marine ornamental fishery in Tejakula sub-district, Bali, Indonesia, on the development of effective community-based natural resource management. With the absence of cyanide fishing for one decade, the coral reef condition has improved from 26% of area coverage to 53%. T-test result shows that there is no significant difference in individual fishing revenue and a considerable decrease in total fishery revenue. The fishers have benefited in resource conservation and a 73% decrease in fishing costs. The overall number of ornamental fishers has declined, due to social pressure, a smaller overall fishing space because of No Take Zones (NTZ), and fewer orders for ornamental fish.Environmental education for local community members is critical to maintain adherence to the reformed method of fishing. Clear definition of the NTZS policy should be acknowledged to avoid recurring conflict among stakeholders.