ABSTRACT Wetland ecosystems provide a wide range of services supporting the livelihood of many rural communities in southern Africa. This study analyses factors influencing rural household labour allocation and supply decisions for competing livelihood activities, including wetland activities. The analyses employ the agricultural household framework, which takes into account that rural households are both producers and consumers. Results show that poor households are more dependent on wetland products and have less capacity to participate in off-farm opportunities, and hence allocate most of their labour time to farm and wetland activities. Better access to education is critical for enhancing employment potential in the non-farm sector, reducing pressure on wetland resources. Government policies that enhance access to education enable the poor to diversify into non-farm livelihood sources and provide necessary incentives for conserving wetland habitat. This has to be linked with broader rural development programmes such as improving access to markets, micro-credit and other small-scale income-generating activities.