60% of the total national fishery production comes from small-scale fisheries. However, small-scale fishing practices that have been occurring for generations in several coastal villages have been marginalized by national-scale projects through national strategic project schemes or even the establishment of conservation areas. The village government as the government unit closest to small-scale fishermen does not have clear authority to optimize the potential of small-scale fisheries. In de facto, small-scale fisheries management efforts have been carried out in various coastal villages; Akoon Village in Maluku, Darawa Village in Wakatobi, Bulutui Village in North Minahasa, Arubara Village in NTT, Labuhan Lombok Village in NTB. Village autonomy that exists in the self-governance community, as is done in various villages, is dealing with the rights of higher government units (state lead governance). Starting from the Provincial Government as provided by Law No. 23/2014 concerning Regional Government and Central Government as provided by Law No. 11/2020 concerning Job Creation. This is a form of tension between the community and the state (Zakaria, 2004). Through Law No 6/2014 concerning Villages, there are opportunities for peace over this tension as the right of origin which is the principle of recognition and the principle of subsidiarity is normatively recognized. The challenge that then arises from the recognition of these principles is that the recognition principle and the principle of subsidiarity of village government are considered subordinate when juxtaposed with the principle of decentralization. This study will look at the important role of village government in managing small-scale fisheries and coastal community living spaces de facto and de jure, based on the authority of village government based on the principles of recognition and subsidiarity.