Sustainable management of a forest management unit requires adapting to international and national criteria and indices at the local level. In this study, criteria and indices of sustainability were determined and prioritized in Lirabi watershed of Ardal in Chaharmahal and Bakhtiari province. According to the local condition, 6 criteria and 30 indices from the initial 10 criteria and 48 indices were selected. The results of weighting criteria showed that economic and social, conservation and protection functions are of greatest weight amongst the others. Amongst the indices, the following were determined to be of greatest importance: livestock management and its contribution to reduce damages, strengthening of protective forces, economic development and participatory afforestation, increasing the non-wood forest products, involving and equal rights of local communities in the benefits of forest, training the locals for alternative jobs and developing mechanisms for resolving conflicts between people and the Department of Natural Resources. The results of this study can be used as a guide to develop local criteria and indices.