Fung Shui forests, also called Fengshui forests, manifest community-based forestry and are forest patches cultivated by Chinese Hakka villages based on traditional geomancy. Local communities have formulated collective rules for protecting such forests, which were considered to represent informal institutions at the local level. Their roles were contrasted with those of the government, which were considered to represent formal institutions at the societal level. Case studies were conducted on Tai Om and She Shan Tsuen in Hong Kong, with the objective of revealing the roles of formal and informal institutions in forest resource governance in Hong Kong. As revealed by the findings, (1) the roles of communities have declined, (2) the government's management mechanism is fragmented, and (3) a mismatch in expectations exists between communities and the government due to differences in management philosophy. Findings can serve as insights for studies on community-based natural resource management in a metropolitan context.