Local residents' participation can take part as strategic key for the quality of tourism destination toward sustainable tourism development. By involving the local communities participation and supporting the quality of tourism destination that is believed enhancing the communities' well-being through increasing people income and job creation. The recidents' participation in tourism can be jointly togetherness with local government in accelerating the quality tourism destination. This study is maka an effort to find the effect of government policies and local residents' involvement to create sustainable tourism development in selected tourism destination area in northern Bali Region. A structural equation model was built and data were collected from tourism destination location selected. Total of 241 respondent were selected from local resident using self-administered questionnaire. The study revealed the local participation is significantly influenced by the government policy and can be concluded that clocal community participation jointly with government policy successful support and positively contributed the quality of tourism destination toward sustainable tourism development.