Soil erosion, deforestation and vegetation degradation have been increasing significantly in Ethiopia, mainly due to population growth, deforestation, agricultural land expansion, and intensified livestock grazing pressure. Appropriate management of communal land resources is essential to sustain regional economic development in Ethiopia. The purpose of this study is to examine how local communities in Sidama Region of Ethiopia can spontaneously manage communal lands appropriately, based on a field survey analyzing the current management status of these lands. The case studies presented in this study suggested that key factors which contributed to appropriate management of communal land conservation by the local communities were well-functioning watchman monitoring, co-benefits for both the local community as a whole and its individual members from conserved communal land, improvement in the living environmental space, and strict penalties for illegal use. It was also suggested that the presence of sacred forest and the locations away from administrative boundaries were found to further enhance appropriate management. However, these efforts may not be expected for the effective management of communal lands without the control of population growth through family planning and rural-to-urban migration policies.