We investigated the effects of socio-economic, institutional, and governance factors on two adjacent Game Management Areas in Zambia: Nkala, which is relatively pristine, and Namwala, which is degraded. Monetary benefits from the Nkala Game Management Area were almost double those from Namwala, which may have been sufficient incentive for the communities of Nkala not to occupy the area or conduct activities that were detrimental to wildlife conservation. There was no such incentive in Namwala, where traditional leaders may have considered settlement and cultivation a better alternative to wildlife conservation. The degradation of the area is largely attributable to weak governance amongst the traditional leadership, which allowed unauthorized migrants to settle and cultivate regardless of the effects of their activities. In contrast, there was good governance in Nkala, where the local chiefs did not allow settlement within the Game Management Area. We hope our findings will be useful in informing the management of Game Management Areas and other wildlife-conservation areas.