The Sherpa communities have experienced profound changes due to state governance and adventure tourism. Nestled between several of the world’s highest peaks, Sherpa communities in the Khumbu area have had to adapt to the available resources, geo-politics and state control. As a result, Sherpa villages have been continually restructuring their lifestyles, traditions, and livelihoods on the mountain scape. Although tourism is the mainstay of the Khumbu lifestyle, governmental structures overwhelmingly define tourism’s growth. My work delves into the changing nature of governance structures in the area and their relationship with tourism. By contextualizing conservation and development using state territorialization, I aim to provide a greater understanding of the tourism industry’s challenges and the importance of place-based decision-making in the Everest region.