The socioeconomic outcomes after five years of community forest management are examined in the Virola-Jatobá Sustainable Development Project (PDS) in Anapu, Brazilian Amazon. In 2007 families were advised by public agencies to establish community-company partnerships for forest management (FM) in this settlement. Operations in 3,000 ha extracted 50,000 m³ of timber, generating gross revenues of US$ 2 million for the local association. This paper examines collective action in key stages of land access and FM. The impacts of the FM process on social structures are explored. Since recent regulations have prohibited private companies to control FM in agrarian reform settlements, local administrative efforts need to change. We will thus evaluate prospects for a system of governance under direct coordination of producers’ organisations. Management changes are seen as positive if combined with public support for local capacity building, but this is unlikely in the short term. Given limits for agricultural land use, effective FM is critical for these groups in order to consolidate land occupation and properly manage natural resources.