The live reef food fish (LRFF) trade has an estimated annual retail value of US$1 billion in the Asia-Pacific region and at least US$30 million in the Philippines. Palawan Province is the trade's center accounting for as much as 55% of the commodity's total export. Concern about the LRFF trade has caused the Palawan Provincial government to take action to regulate the trade. Four key policy options to address the short-term policy objective of developing a sustainable LRFF industry through the reduction of threats associated with destructive fishing and overfishing were proposed. These four policy options and associated analyses were presented to stakeholders at three separate policy consultations. The stakeholders reached a consensus that a regulated LRFF trade was the most sensible option. As a result, the Provincial Government of Palawan took action to enact "The Palawan Live Reef Fish Ordinance of 2006", which provides for the sustainable and integrated regulation of the LRFF industry. This provincial ordinance will assist in crafting a national policy for the LRFF trade and may also be useful in revising the 1998 Philippine Fisheries Code. The key challenge is how to translate the ordinance provisions into effective on-the-ground actions.