This study aims to comprehensively analyze the implications of collaborative governance and community empowerment in tourism development in the Pakem Sub-district, especially ecotourism development, regarding the outcomes of public policy integration felt by the community and the social dynamics in the research site. This research employed a descriptive qualitative method with a case study approach. The data were collected through interviews with relevant sources from three stakeholders: regional officials in the Pakem and Hargobinangun Sub-districts, private parties from Ledok Sambi and Bumi Tangkil, and the local community from Pokdarwis and MSME forums. Meanwhile, field observation was carried out by looking at environmental and social conditions and the potential of local wisdom or cultural activities at tourist attractions in the Pakem Sub-district. This study utilized both primary data from interviews and observation and secondary data from literature studies such as journals, books, the internet, laws and regulations, and other scientific articles related to this research. The study discovered that social dynamics occurred when most of the local community began to depend on the nets of the tourism industry; local wisdom and this natural atmosphere were the main attractions for tourists. However, integrating public policies has not significantly impacted the community even though the Pakem Sub-district has begun to actively implement tourism development with the principle of ecotourism development. Subsequently, the lack of socialization for stakeholders in the management of sand mines and the construction of non-star hotels have harmed the quality of rivers and the availability of clean water for the local community. The collaborative governance system in the Pakem Sub-district has faced several challenges, such as improving the quality of human resources, aligning goals, integrating stakeholders, and adjusting social dynamics.