Sustainable management of natural resources in small scale agriculture is a less debated issue, especially its governance aspects. Focusing on selected villages where a policy towards sustainable agriculture has been introduced in Karnataka - a state showing signs of agrarian distress; the paper discusses the governance aspects in natural resources management for small scale farming. Based on focused group discussions with farmers, officials and voluntary workers, the study indicates benefits for small farmers and less developed districts from the emerging policy trend towards sustainable agriculture. We also elicit governance factors responsible for outcomes of such policies. Inclusive design and participatory governance emerge crucial along with efficacy of government officials and completeness in implementation.