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This paper examines and discusses issues concerning the smallholder teak forestry in taungya style in southern Laos. The Provincial department of Agriculture and Forestry of Champasack Province introduced teak forestry for two reasons; poverty reduction and reforestation. We have conducted surveys in a rural village which has typical features of population size and ethnic. Questionnaire survey and field survey with GPS were conducted to collect household-level information and to produce an accurate land-use map respectively. This paper focuses on effects on household income due to the introduction of the teak forestry, degree of compliance with land-use regulation, and difference of degree of dependence on natural resources between teak forest owners and forest-landless villagers. By analyzing household incomes, we revealed that teak forestry didn't increase the owners' income though expansion of teak forests without considering land-use regulation was obviously identified on the map of teak forests distribution. Furthermore villagers have continually depended on natural forests while they have engaged in teak forestry. Another style of livelihood based on many kinds of local resources might be required for sustainable developments.
