We combine insights from theories of environmental and institutional entrepreneurship with the community resilience literature to investigate whether communities can create decentralized institutions to reduce losses from natural hazards that are more effective than relying on state and national government institutions. We argue that decentralized institutions emerging from local communities may be more effective in responding to a community’s specific needs because of their incorporation of local knowledge. Using an original longitudinal dataset of wildfire prevention plans in Northern California, we find evidence that institutions combining local and governmental knowledge and resources can improve the provision of this public good. We suggest this has important implications for environmental entrepreneurship and the many ongoing efforts directed at creating more sustainable and responsible living.