Natural resources are considered to be essential elements of human life for fulfilling necessary needs, such as food, clothing and housing. However, the effort to addressing basic needs, to some extent, causes to creates conflict among stakeholders of natural resources stakeholders, which leads to adverse effects on their livelihoods. The purpose of this paper is to illustrate the conflict pattern among relevant actors, and to analyze the impact of this conflict on the rural communities. A multiple case study methodology with multiple units of analysis was utilized conducted in the Dorahan and Cheshme Ali Watersheds, located in the Chaharmahal and Bakhtiari Province, Iran. The data were collected using qualitative techniques such as observation, semi-structured interviews, focus groups, mapping and Venn diagrams. The data were finally analyzed using the Conflict Pattern Assessment (CPA) technique. The results showed that the external actors and local communities, including rural and nomadic people had different interests in the watersheds, which caused conflicts among them. The most important consequences of these conflicts have been weakening of rural households' livelihoods, increasing rural – urban emigration and decreasing social capital. Despite the negative impacts, the conflict has had some short- term positive impacts on improving rangelands vegetation due to prohibiting rural livestock from early grazing.