The findings are presented of a study conducted in Calauag Bay, Quezon Province, Philippines in order to estimate resource rent of mangrove areas converted to fishpond production. The rents were calculated based on the technology practised by the farmers and the prices of inputs and outputs that prevailed during the study period. The major causes of mangrove depletion are cutting of mangroves for fuelwood and charcoal and clearing for fishpond development. It was concluded that there is justification for the government to increase the feed which could be used to rehabilitate the inland-coastal fisheries to improve productivity and ensure sustainability of the ecosystem for future generations.