We have investigated why conflicts linked to the distribution of power between governments and actors at the national and local levels concerning environmental management of mountain areas in Norway persist despite political intentions to strengthen local powers. We seek to explain this by analysing changes in policies, institutional frameworks, and regional contexts, and the local perceptions of these changes. Paradoxically, the national government's power has apparently been strengthened by new sectoral regulations and more stringent enforcement of the existing ones, increases in the number and extent of protected areas, and failures to act on intentions to devolve power. An additional factor spurring conflicts is the increased importance of tourism to mountain communities. To become more relevant to policies and development in mountain areas, future studies on multilevel governance must address multilevel politics, entire mountain areas, and the context of their development, rather than focusing on minor projects and protected areas.