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In 2016, the national government of Panama passed a law allowing for co-management of protected areas, revitalizing the dialogue of community-based conservation programs and inducing decentralization of national conservation strategies in the country. This study examines one such co-management project at the Pablo Arturo Barrios (PAB) Wildlife Refuge, a coastal/marine protected area in the district of Pedasí, Panama. Through a combination of interviews, observation, review of institutional documents, and a community survey, this study documents the community contexts and implicit power networks that propelled this community to apply for the co-management of a local protected area, and examine its potential as a conservation strategy. Factors propelling successful conservation in Pedasí include a history of community organization for conservation purposes, a historic economic and cultural reliance on local natural resources, and the presence of two environmental non-profit organizations working to promote conservation interests. However, shifting sources of livelihood and community demographic makeup are adding a critical mass of development interests to the community. After organizing inquiry into a social ecological systems framework and locating local axes of power according to political ecology, this study concludes the interests of tourism development actors are likely to be advanced over those of conservation actors. Due to the preference of both local and national politicians for development in this high-value coastal space, as well as lack of engagement from the broader community in Pedasí, prospects for successful co-management of the protected space remain elusive and the refuge continues to be at risk of destruction from large-scale development.