The concept of resilience has been used for the assessment of community development and its prospects in natural resource-based localities. In the article, the resilience of two Icelandic coastal communities is evaluated. During fieldwork, various qualitative data were collected. Both communities have had to adjust to a radical change in the fisheries management, resulting in the loss of resource entitlements. Substantial differences were found in the level of resilience of these two coastal villages. One is undergoing a transition towards a non-fisheries-based existence. The other struggles to adjust and seems to have reached the limits of resilience.

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