Until the 1990s fisheries were largely managed by the state. Since then, Dutch government and the sector increasingly recognized that a fishing industry cannot be managed effectively without the cooperation and participation of fishers to formulate policy and to implement and enforce laws and regulations. As a result, in the nineties, the existing neo-corporatist arrangement was replaced by a co-management system in the Dutch flatfish fishery. Co-management is often seen as leading to greater procedural legitimacy and subsequently compliance. However, constructing an effective co-management arrangement is not only a matter of building institutions but also a matter of building trust relations between the government and industry. Institutional arrangements such as co-management can contribute to these trust building processes; however, a too strong reliance on institutional arrangements can lead to distrust when new challenges are being faced and institutional arrangements fail to adapt to these changes.