Bolivia has experienced a rapid proliferation of protected areas over the past several decades. Using rich biophysical and socioeconomic data, we estimate the impacts of Bolivia’s protected areas on poverty between 1992 and 2001. We find no evidence that the establishment of protected areas exacerbated poverty. In fact, we provide robust estimates indicating that communities affected by protected areas exhibited differentially greater levels of poverty reduction as compared to similar unaffected communities. Our results add to the growing body of evidence that environmental conservation does not necessarily come at the expense of local communities.