Most of the Swedish coastal fisheries are not sustainable from either a social, economic or ecological point of view. We propose the introduction of local fisheries management (LFM) as a tool for restructuring the present large-scale management system in order to achieve sustainability. To implement LFM two questions need to be answered: How to distribute the resource fish among different resource user groups? How to restructure present fisheries management to meet the criteria of sustainability? Starting from these questions we describe possible forms of LFM for Swedish coastal fishery supported by recent research. The biological and social preconditions for restructuring fisheries management are derived from an analysis of the ecological and managerial situation in Swedish fishery. Three types of LFM—owner based, user based, and community based management—are analyzed with regard to the tasks to be carried out in LFM, the roles of management groups, and the definition and optimal size of management areas.