The megadiverse biome of the Paraguayan Pantanal is in danger due to the expansion of cattle ranching and agricultural frontiers that threaten not only the fragile equilibrium of natural resources, but also that of local governance and cultural identities. As a consequence, weak governance stresses the relations between natural resource-dependent communities, generating socio-environmental conflicts. This perception study seeks to find community-based governance models for sustainability in the context of Paraguayan wetlands. According to the organizational principles of community-based natural resource management (CBNRM), we applied qualitative approaches with the use of the Governance Analytical Framework (GAF) to identify problems and social norms. Our findings suggest that the Yshiro indigenous self-organized group (Unión de las Comunidades Indígenas de la Nación Yshiro (UCINY)) can be considered as a model for community-based governance. Besides, we discovered that this specific governance model is highly threatened by the impact of the national neo-extractive economy.