Conversion of mangrove forests for fish and shrimp ponds has been occurring in South Sulawesi, Indonesia for more than half a century. In some communities virtually all mangrove forest has been removed and subsequent environmental consequences have been encountered, including flooding and coastal erosion. One group of communities has countered negative environmental impacts, while at the same time increasing their incomes, through development of a mangrove agroforestry system. Monocultural plantings ofRhizophora mucronata Lam. in blocks along the coast have mitigated erosion and reduced flooding, protecting fish and shrimp ponds located inland. Controlled harvesting of the planted trees has produced sizeable incomes through fuelwood sales.