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The territorial waters of Australia and Papua New Guinea (PNG) are similar in that they contain extensive, biodiverse coral reef systems that remain in relatively good condition, despite some recent setbacks. However there are stark contrasts in the socio-economic environments of the two countries; Australia is a modern developed economy with a high level of affluence, while PNG is still in transition from a basic subsistence economy. The different socio-economic circumstances have lead to a marked difference between the two countries in the way reef resources are used, and consequently, how they are managed. Approaches to reef management have continued to diverge during the past decade. Australia is setting an example to the rest of the world for the conservation of coral reefs through a system of central planning, legislation and enforcement. Conversely in PNG, there is minimal central management, although there is recognition by government of the importance of state controls and legislation. An alternative model is developing in PNG for a decentralised, community-based system for reef resource management driven largely by NGOs, because there are limited resources for national control. Results from established or planned monitoring programs will determine the effectiveness of these differing approaches in the long-term.