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Decentralization has emerged as an important instrument of environmental and development policy in the last two decades. Presumed benefits of environmental policy decentralization depend in significant measure on broad participation in the programs that governments create to decentralize decision making related to resource management. This paper uses data from protected areas in Nepal's Terai to examine who participates in environmental decentralization programs. On the basis of our statistical analysis, we highlight the fact that the likelihood of participation in community-level user groups is greater for those who are economically and socially better-off. We also find that individuals who have greater access to and who visit government offices related to decentralization policies more often are also more likely to participate in user groups created by state officials. Finally, we find a negative correlation between education and levels of participation. Our study and analysis support the argument that for decentralization policies to be successful on equity issues, it is important to build institutional mechanisms that encourage poorer and more marginal households to access government officials, improve access to educational opportunities, and create incentives to promote more interactions between less powerful rural residents and government officials. Key words--environment, protected areas, forests, resource management, Nepal, South Asia