This paper examines the challenging role of the local government in tourism development and management. In examining the role of the local government, a certain tourism activity and development in a certain municipality in the Philippines was made the center of discussion as it brings issues and concerns that ripened into a case which is the subject of this study. In situating this study within the context of local government role in tourism management, this paper discovers the tensions at play between local government, other government agencies and the stakeholders. The significance of this study is that it allows a clearer understanding of the role of the local governtment and how to regulate tourism activities and development in a certain tourism place without compromising the same. Case analysis method is use in this sudy in examining the events, concerns and issues surrounding the tourism activities and development.