AbstractThe paper describes the traditional relationship between pastoralism and the environment, and the institutions that underpin livelihood security and natural resource management. It identifies the circumstances that have led to pastoralism coming under threat and the resulting increase in inter‐tribal conflict over natural resources. The paper discusses how pastoralist institutions are changing and the role a third party can play in facilitating new institutional arrangements. Recent initiatives by non‐governmental organizations (NGOs) in capacity building for environmental management and peace building are examined for the extent to which these external interventions on conflict resolution can stabilize the pastoralist system. Copyright © 2003 John Wiley & Sons, Ltd.