Penglipuran Traditional Village is one of the traditional settlements in Bali with unique characteristics in the development of community-based tourism. The contribution of the customary law community to the growth of this tourist village is reflected in the preservation of traditional building architecture, which is uniform and well organized from the upper to the lower part of the village. This study employs an empirical research method to analyze community involvement and the applicable legal framework. The results show that the existence of Penglipuran Tourism Village largely depends on the active role of the community in preserving the authenticity of Balinese culture in accordance with the mandate of Bali Provincial Regulation Number 2 of 2012 concerning Balinese Cultural Tourism. This contribution serves as a key pillar in maintaining local identity while enhancing the tourism appeal of Bangli District