This principal aim of this chapter is to undertake a comprehensive review of tourism’s impacts on social-ecological systems and emphasize the need for a just local governance to realize the opportunities for its positive contribution to environmental sustainability and the greater good. It evaluates tourism’s contribution and adaptation to critical environmental issues in the Anthropocene, including climate change, biodiversity loss and pollution. It reiterates that tourism’s pursuit of a growth-driven paradigm of development and market expansion is unsustainable without its integration into key concepts of practices of the green economy and good governance. It reinforces that fundamental to good local governance aiming to utilize tourism natural capital regeneration and advancements in human well-being, it is necessary to address equity and ethical issues that preclude this aim. These include natural capital ownership, fairness of sharing of economic benefits and access to participation in tourism. Subsequently, at a local level, good tourism governance has to embrace a plurality of stakeholder voices appropriate to the social and cultural composition of tourism’s geographical territories. It is argued that beside human ethical concerns, a stronger environmental ethic is required in local governance by tourism actors, manifested in pro-environmental behaviour to conserve nature. The chapter also emphasizes the requirement for the inclusivity of diverse worldviews in tourism governance, acknowledging the crucial value of traditional and Indigenous knowledge for a sustainable future.