Describes the history, restoration, and conservation policy of Stone Town of Zanzibar. A small pilot project, the restoration of a single house, sponsored by bilateral aid was implemented. Policy changes contributed to the revitalization and conservation of Stone Town. In 1985, the Government of Zanzibar established a new institution dealing only with conservation, the Stone Town Conservation and Development Authority. The new institution sold Government houses in bad condition to the inhabitants under the condition that they undertake all necessary repair works. More than 80 houses were sold and most of them immediately repaired.