摘要
Badung River in the Denpasar city of Bali Province, Indonesia, faces many challenging issues recently. As a common pool resource, the river has been under pressure from many activities including household activities which dump household wastes, and pollution externalities arising from dyeing and screen-printing of fabric industries. Conventional approach to control the pollution might not be effective since it will end up in zero sum game. This paper attempts to explore the role of traditional institituion in managing common pool resource such as controlling river pollution. This research is aimed to know the effectiveness of traditional law on managing pollution of printing and dyeing industries on this big river. Survey method was used for collecting primary data and then the data was analyzed by ordinal regression to determine the effect of internal and external factors which influence the intensity of pollution. The result indicates that even though traditional might help to influence household and industry's decision making, it might not sufficient enough to reduce the pollution of the river. Other factors are influencing the waste management, such as level of waste management knowledge of the entrepreneur, the attitude of the entrepreneur toward public program especially on waste and pollution management, the financial support, and the education level of government supervision. Furthermore, Government of Denpasar City need to arrange policy that giving incentive to businessman who handling waste properly and also giving reward to traditional organization who implementing local wisdom and norm to control river pollution strictly.