Abstract: Community and natural resource management are related at difference levels through time. The concept of sustainable development is a balance between economic, social and environmental aspects. Sustainable development includes sustainable livelihood, which, in turn, can explain community potential to solve the problems of well-being. Three rural villages in the West of Thailand, Ban (sub-district) Hoisapan, Ban Chong-kab and Ban Ma-kabung were selected for this study. Five conceptual capital or assets composed of: human and culture, natural resource, economic and financial, social and management and physical capital. Check lists, questionnaires, key-informant interviews and focus groups were employed. The interview questionnairs were conducted on 20% of the population in each site. Triangulation approach was used to data analysis. Each community was different in each capital context. Human and culture capital were found to be the essential assets in all communities, consisting of leadership, participation and natural resource management traditions. Out of the 3 study villages, tradition asset as a part of human and culture capital was more vital in the Karen ethnic village than the other two. Community networks and kinship supplied community potential. In terms of natural capital, each site was rich with forests and forest products; however, the villagers made a living at subsistent level and most had debts. Sustainable living started with community awareness for their own future together with government or outsider support to provide basic infrastructure and young generation involvement. Transforming structures meant changing institutions, organizations, policies and legislation that shapes livelihoods.