Community-based fisheries management is being widely promoted as an alternative to centralized systems based on the familiar bioeconomic models that have manifestly failed to prevent a near catastrophic overexploitation of fish stocks worldwide. The Pacific Island Region probably contains the world’s greatest concentration of still-functioning traditional community-based systems for managing coastal-marine fisheries and other resources. It has been frequently asserted that many such traditional systems provide both a firm foundation for future coastal fisheries management in the Pacific Islands Region, as well as a conceptual framework for managing fisheries elsewhere. Although now seemingly self-evident to fisheries development “experts”, such assertions remain largely unverified. Whereas it is a relatively straightforward task to distil basic “design principles” from a sample of systems, it is far more complex to analyze the multi-sectoral national environment in which they function, especially when their history is taken into account. In other words, it is far less widely appreciated that many contemporary community-based fisheries management systems are the end products of a long process of change and adaptation to external pressures and constraints. In this article, the author addresses some of the broader contextual issues that should be appreciated in policy making with respect to a potential modern role for traditional management systems in general, and in the analysis of a future role for any given system. First, the principal external factors that have caused change in systems are described and exemplified. The recognition of the potential role of existing community-based fisheries systems, and attempts to act on it, is summarized for some Pacific Island nations, with a focus on the complex problem of reconciling customary and statutory legal systems, In the final section the author examines three principal national policy alternatives regarding the potential role of existing local fisheries management systems, together with three main criteria for determining whether or not a system can be adapted to fulfil modern requirements.