Some projection shows that mangrove in Ayeyarwady delta would disappear until 2020. Although Myanmar mangroves are among the largest mangrove habitats in Southeast Asia, continual deforestation, both historically and contemporarily, lead to significant concern for future mangrove sustainability in the region. Historically, Ayeyarwady delta had huge tracts of mangroves that underwent extensive farmland conversion. Consequently, the region played an important role in local economy and food security, accounting for 35 % or more national rice production. As a result, the mangrove cover has dramatically decreased in 1990 to 2000. Despite significant conservation policy reforms in the 1990s (e.g., Forest Law (1992), Forest Rules (1995)), agriculture, especially paddy fields, is simultaneously encouraged as a means to reduce poverty. Recently, the Government of Myanmar encouraged community participation for conservation of mangrove through various activities of the Forest Department and Ministry of Environmental Conservation and Forestry. In addition, International Non-Governmental Organizations (INGOs) and local NGOs promote plantation of mangrove leading to a gradual increase in level of awareness among local people. Legal systems and policy transition are key factors for conservation of mangrove in Myanmar. Under this backdrop, this chapter elaborates the correlation among deforestation of mangrove forest in Ayeyarwady Division and expansion of paddy fields through the lens of changing policy environment.