Resolving local resource conflicts in rural coastal communities is important for the implementation of effective resource management systems and development policies. This article examines the characteristics of small-scale fishing households that are prone to be involved in resource use conflict with other local marine resource users based on the data collected by a household survey in Indonesia. Intra-village and inter-village conflicts are examined separately. We find that social relationships and individual perceptions of changes in fishery conditions are strongly associated with both intra- and inter-village conflicts but in a different way for each type of conflict. Our results show that unintended consequences may arise from improving a social relationship between fishery users and their village leader. The improved social relationship discourages intra-village conflict but at the same time increases inter-village conflicts, thus creating a potential dilemma in conflict resolution. Our results also suggest that a perception of declining fishery conditions is correlated with an increase in inter-village conflicts when there is a perceived link between resource depletion and an increase in the benefits obtained by outsiders. Conversely, a decrease in the amount of resources available for exploitation may decrease intra-village conflict when in-group cooperation is needed to combat the declining environment.