This dissertation is a reflexive to capitalism. By applying the concept of the “new commons”, this work aims at understanding how political and economic elites could earn profit from cultural heritages but in the meantime impose the costs of conservation to the local people. Ideally, this problem can be solved by inviting community residents to participate in a collaborative structure in which intangible and tangible heritages are linked and conserved in a dynamic and synergetic manner to pursue a just and sustainable development. However, successful cases were seldom reported. This work, therefore, is to show such possibility and conditions for success. Via the lens of new institutionalism and critical institutionalism, the author examines how informal institutions can be synergized by the public policy through a case study on the co-management project in historic settlements in Kinmen National Park. The finding demonstrates that the indigenous institution in a community can be adapted to new political and economic conditions if the grassroots participants can be empowered.