This study examines policies that have been applied to traditional water resource management using case studies in Bali, Indonesia. The paddy fields of Bali have long been managed by the traditional irrigation organization, “Subak.” The paddy fields such as in Tabanan Regency, Bali, were registered as a World Cultural Heritage in 2012 by UNESCO as “cultural landscape,” which have been created as a basis of harmony between humans and nature. However, with the recent surge in global tourism, Bali has experienced a considerable reduction in paddy field areas, posing challenges to agricultural land conservation. In response, the government adopted Subak-based policies. This study employed field surveys to assess the impact of the Subak government program, examining socioeconomic conditions of local farmers, paddy field reduction, income changes, and the effectiveness of subsidies and policies supporting the Subak system. The results revealed a complex relationship between tourism-driven economic pressures and the sustainability of traditional farming. The key findings comprise decreased paddy field areas, alterations in farmer incomes and livelihoods, and challenges in preserving the cultural and environmental integrity of the Subak system. This study offers broad insights into sustainability, cultural preservation, and balancing modernization and traditional practices.