Fishery-management policies based on the allocation of exclusive fishing rights, territorial use rights, and sea zoning are recurrent tools for achieving sustainability. In Chile, the 1991 Fishery and Aquaculture Law reformed division of the right to fish between the artisan and industrial subsectors, introduced sea-zoning (space-based) strategies, and established a differential individual transferable quota (ITQ) system. Here, I describe these arrangements and focus on the small-pelagic artisan and industrial purse-seine fishery. Results show that the reform and empowerment of the artisan fishers, due to new governance, has lead to increases in the artisan fleet and landings but to decreases for the industrial sector. The reform appears to have counteracted the inherent "race for fish" characteristic of common-pool resources in open-access systems.